Japan’s financial regulator plans to examine how major banks manage risks tied to securities investment and foreign-currency liquidity as they adjust to "a world with interest rates.”
In its annual policy guidance released on Friday, the Financial Services Agency pointed to uncertainty over the global economy and markets at a time when Japanese financial institutions are getting used to rising rates at home for the first time in years.
While the FSA didn’t directly mention risks stemming from higher rates in Japan, it said "there are changes in the financial environment such as the gradual rise in long-term interest rates and increase in volatility in the stock market.”
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.