There were 1,343 press releases posted in the last 24 hours and 257,013 in the last 365 days.

Japan : Financial System Stability Assessment


International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

July 31, 2017

Electronic Access:

Free Full text (PDF file size is 1919 KB).Use the free Adobe Acrobat Reader to view this PDF file


Weak growth and low interest rates, together with underlying demographic headwinds, are posing chronic challenges for the financial system. Despite accommodative financial conditions, sluggish domestic demand have dampened investment and domestic credit growth. Combined with low interest rates and a flat yield curve, these factors are posing a sustained challenge for the financial system—one of the largest and most sophisticated in the world. To a significant extent, factors behind this environment are structural in nature, reflecting in particular demographic headwinds. Profitability of banks and life insurers is low, and net interest margins are shrinking. Since many advanced economies are likely to face similar headwinds in the future, the importance of Japan’s response to these challenges extends beyond its borders.