IMF Staff Country Reports

Japan: Financial System Stability Assessment

July 31, 2017

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Japan: Financial System Stability Assessment, (USA: International Monetary Fund, 2017) accessed September 18, 2024

Summary

This paper assesses the stability of the financial system in Japan. Although the financial system has remained stable, the low profitability environment is creating new risks, and pressures are likely to persist. The search for yield among banks has led some to expand their overseas activities, and more generally to a growth in real estate lending and foreign securities investments. Efforts to increase risk-based lending to small-and medium-sized enterprises are welcome, but many banks still need to develop commensurate credit assessment capacities. Stress tests suggest that the banking sector remains broadly sound, although market risks are increasing, and there are some vulnerabilities among regional banks.

Subject: Banking, Commercial banks, Financial institutions, Financial services, Insurance, Insurance companies, Securities

Keywords: Asset-based lending, Bank management, Banking sector, Banks cope, BoJ purchase, City bank, Commercial banks, CR, Credit risk, Financial market, Financial system, Funding source, Global, Insurance, Insurance companies, ISCR, Regional bank, Risk profile, Securities, Solvency regime, Venture capital

Publication Details

  • Pages:

    109

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2017/244

  • Stock No:

    1JPNEA2017003

  • ISBN:

    9781484313435

  • ISSN:

    1934-7685