BOJ asks banks to stay vigilant against market tail risks

Lender funding bases sufficient to withstand various stress test events

20241024 BOJ Ueda

Bank of Japan Governor Kazuo Ueda discussed Japanese inflation and monetary policy at the International Monetary Fund and the World Bank Group 2024 Fall Meeting in Washington on Oct. 23. © Reuters

TOKYO (Reuters) -- Japanese banks have sufficient capital bases but need to be vigilant against tail risks including developments in global financial markets and geopolitical perils, the Bank of Japan said on Thursday.

The capital and funding bases at Japanese banks are sufficient to withstand various stress events equivalent to the global financial crisis, the BOJ said in its report on the financial system.

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