The latest Bank of Japan (BoJ) Financial System Report published on Friday revealed that “Japan’s financial system has been maintaining stability on the whole.”
Additional quotes
Japanese banks have sufficient capital bases to perform financial intermediation activities appropriately even amid the global tightening of financial conditions and the resultant various types of stress.
However, vigilance against tail risks continues to be warranted.
The period of stress may be prolonged further with continuing monetary tightening by central banks and the resultant concerns about a slowdown in foreign economies.
Market reaction
At the press time, USD/JPY is keeping its range play intact just below 150.00, modestly higher on the day.