BoJ’s Nakaso: BoJ must continue to conduct monetary policy in appropriate manner

The Bank of Japan (BoJ) board member Nakaso is on the wires now, via Reuters, making a scheduled speech in Tokyo.

Key Headlines:

BoJ must continue to conduct monetary policy in an appropriate manner

BoJ must take into account developments in economic activity and prices as well as financial conditions.

BoJ easing has encouraged more active lending by banks.

Continued monetary easing has exerted downward pressure on bank profits.

The financial system is a transmission channel of monetary policy, so its stability forms the basis for sustainable economic growth.

There is a limit to achieving financial stability by utilizing prudential policy alone.

No concern about a large-scale systemic risk in the financial system.

Systemic risk indicators have been increasing for regional banks, but they have enough capital and liquidity.

Growth strategy plays a role in fostering financial stability.

Consolidation of financial institutions could be effective in enhancing stability, the efficiency of the financial system.