BOJ Kuroda: Must scrutinize impact of easy policy on regional banks

FILE PHOTO : Bank of Japan Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo
FILE PHOTO : Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan October 31, 2018. REUTERS/Issei Kato

April 4, 2019

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank will look carefully at the impact its massive stimulus program is having on the country’s regional banks.

“Structural factors, such as a dwindling population, are likely to weigh on regional banks’ profits. We must be vigilant to the risk this could erode their capital base and have a negative impact on financial intermediation,” Kuroda told parliament.

(Reporting by Leika Kihara and Kaori Kaneko; Editing by Sam Holmes)

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