Kuroda warns of dangers of heavy money printing

Kuroda: Financial bubbles tend to associate with financial crises when accompanied by excessive credit creation. — Bloomberg

TOKYO: Bank of Japan (BoJ) governor Haruhiko Kuroda warned of the potential dangers of heavy money printing, saying that financial bubbles, when accompanied by excessive lending by commercial banks, tend to trigger financial crises.

Speaking ahead of the Group of 20 finance leaders’ gathering in the southern Japan city of Fukuoka this weekend, Kuroda said the G20 members must focus on implementing the financial reforms they launched in 2009 to prevent another financial crisis.