Margin pressure has stripped Japanese banks of their "vigor and dynamism," BOJ Governor Haruhiko...

|By:, SA News Editor

Margin pressure has stripped Japanese banks of their "vigor and dynamism," BOJ Governor Haruhiko Kuroda says, noting that while lending for M&A activity and real-estate is picking up, lending to smaller businesses is still "sluggish." This puts pressure on margins and may threaten stability in an environment of rising rates, Kuroda cautions. However, if banks expand lending and thereby increase margins (something he says they are in a position to do), the economy will grow and "no major concerns" will arise regarding financial stability even in the event rates rise by 1-3%. (previous)