BoJ member says action needed for recovery

“At present, financial institutions have sufficient capital so there is no big concern over Japan’s banking system. But we need to be prepared to take swift action, with a close eye both on the economy and the banking system, ” Sakurai said in a speech to business leaders in Fukui prefecture. (File pic BoJ building)

TOKYO: Bank of Japan (BoJ) board member Makoto Sakurai said yesterday the central bank must take “swift and appropriate” action if the coronavirus shock delays the country’s economic recovery.

If the pandemic takes longer than expected to contain, more companies could be pushed under, saddling commercial banks with bad loans and threatening Japan’s financial system, he said.