Pandemic impacts global economy by weakening Japan’s banking sector

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Central Bank of Japan President warns that the crisis could increase credit costs for financial institutions

The pandemic is severely damaging the global economy and could weaken the country’s banking sector, warned Japanese central bank president Haruhiko Kuroda on Tuesday, a day after the Bank of Japan expanded the stimulus to cushion the economic blow of the crisis.

Kuroda said Japan’s banking sector remains stable as a whole, as financial institutions have sufficient capital buffers to cope with the impact of the pandemic.

But he said the central bank will work closely with the Financial Services Agency, which is Japan’s banking regulator, to protect itself against the risk of a financial crisis.

“The global economy is getting worse as the pandemic spreads around the world,” Kuroda told Parliament.

“If it takes longer than expected to contain the pandemic at home and abroad, it could hurt the economy and increase credit costs for financial institutions,” he said.

Japan’s central bank, by promising to expand purchases of corporate debt and government bonds, in an attempt to ease funding shortfalls for companies affected by the pandemic.

Source: https://www.moneytimes.com.br/presidente-do-bc-do-japao-alerta-para-impacto-de-pandemia-na-economia-global-e-em-bancos-do-pais/

Photo: “The global economy is getting worse as the virus spreads around the world,” said Kuroda (Image: Kyodo / via Reuters)

Central Bank of Japan President warns that the crisis could increase credit costs for financial institutions

The pandemic is severely damaging the global economy and could weaken the country’s banking sector, warned Japanese central bank president Haruhiko Kuroda on Tuesday, a day after the Bank of Japan expanded the stimulus to cushion the economic blow of the crisis.

Kuroda said Japan’s banking sector remains stable as a whole, as financial institutions have sufficient capital buffers to cope with the impact of the pandemic.

But he said the central bank will work closely with the Financial Services Agency, which is Japan’s banking regulator, to protect itself against the risk of a financial crisis.

“The global economy is getting worse as the pandemic spreads around the world,” Kuroda told Parliament.

“If it takes longer than expected to contain the pandemic at home and abroad, it could hurt the economy and increase credit costs for financial institutions,” he said.

Japan’s central bank, by promising to expand purchases of corporate debt and government bonds, in an attempt to ease funding shortfalls for companies affected by the pandemic.

Source: https://www.moneytimes.com.br/presidente-do-bc-do-japao-alerta-para-impacto-de-pandemia-na-economia-global-e-em-bancos-do-pais/

Photo: “The global economy is getting worse as the virus spreads around the world,” said Kuroda (Image: Kyodo / via Reuters)

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