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BOJ says 90 percent of banks taking on more risk post-QE 

April 24, 2014
Leika Kihara, Reuters

Over 90 percent of Japanese banks have increased loans and investment in riskier assets in the past year, the Bank of Japan said on Wednesday, suggesting that the wall of money it is pumping out is spilling over into the broader economy.

"Financial institutions have reduced investment in domestic bonds, especially Japanese government bonds (JGBs), while increasing investment in relatively high-risk assets such as loans," the central bank said in a semi-annual report analysing Japan's financial system.

The ratio of banks that increased investment in riskier assets, including loans, has gradually risen since last March and exceeded 90 percent in February, according to a survey included in the report.

Read more: Reuters

 
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