BOJ finds intermediation functioning smoothly, examines overseas nonbank links
Summary
The BOJ’s 23 October report finds Japanese intermediation functioning smoothly with adequate capital and stable funding, using information principally through September.
Implications
Operating credit supply coexists with channels for overseas shocks; borrower quality and concentration affect future resilience.
What remains unknown
The 23 October assessment principally uses September data; future losses are stress scenarios.
What to verify next
Changes in overseas-fund exposures, defaults and funding will test the reported stability.