BOJ warns of rising financial vulnerability as banks hunt for yields

Topics Bank of Japan

Japanese commercial banks are loading up on complex financial products and risky loans in their hunt for yields, the central bank said on Thursday, warning of the accumulating cost of prolonged ultra-low interest rates.

Faced with narrowing margins and a dwindling population, regional banks have increased loans for property investment and to companies with low profitability, the central bank said in a twice-yearly report analysing Japan's banking system. Despite continued improvements in the economy, some of the loans have turned.....

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