Japan's ex-bank regulator urges lenders to scrutinise portfolios amid market rout

TOKYO : Japanese banks should scrutinise their foreign currency-denominated portfolios and holdings of low-liquidity assets in the wake of the recent global market rout, Tokio Morita, former executive of the country's banking regulator said on Monday.

Japan's generous deposit guarantee system and the small ratio of online to traditional banking accounts meant domestic lenders are unlikely to face the kind of rapid deposit withdrawals that took down Silicon Valley Bank, said Morita, former vice minister for international affairs at the Financial Services Agency .

But Morita warned against complacency, saying that domestic banks must safeguard against potential spill-overs such as by re-assessing their portfolios. The lenders must also scrutinise risks associated with their holdings of low-liquidity assets in case global market trade for such instruments dry up, he said.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Japan's business services prices perk up near BOJ's inflation targetTOKYO :Japan's business-to-business services inflation picked up in February on a tourism rebound and rising labour costs, data showed, offering the central bank hope that steady wage hikes would aid in sustainably hitting its 2 per cent inflation target.With inflation already exceeding the 2 per cent target
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »