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BOJ's Kuroda says aware easy policy could destabilize banking system

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BUSINESS NEWS

NOVEMBER 5, 2018 / 9:22 AM /

NAGOYA, Japan (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was aware that prolonged ultra-loose monetary policy could squeeze financial institutions’ margins and potentially destabilize the country’s banking system.

Kuroda also said uncertainty surrounding overseas economies was heightening due to escalating Sino-U.S. trade friction and the rise of protectionism.

“The impact of such problems on Japan’s economy is limited for now,” Kuroda said in a speech to business leaders in Nagoya, central Japan. “But if the problems persist, the effect on Japan’s economy could become bigger.”

Reporting by Leika Kihara; Editing by Chang-Ran Kim

Our Standards:The Thomson Reuters Trust Principles.

From: https://www.reuters.com/article/us-japan-economy-boj/bojs-kuroda-says-aware-easy-policy-could-destabilize-banking-system-idUSKCN1NA02T

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