Ichiro Fujiwara, who heads an association of Japan’s second-tier regional banks, warned on Wednesday, warned against the dangers to the industry if the Bank of Japan (BOJ) expanded its ultra-loose monetary stimulus or deepened negative interest rates.
Key Quotes:
“The side-effects of such a step would be bigger and affect not just regional banks but the entire financial industry.”
“The BOJ may say it will look at the benefits and costs of such measures. But for us, there would be no merits at all.”
“Do not expect interest rates to rise much in coming years, as overseas economic uncertainty kept the BOJ from exiting ultra-loose policy.”
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