Japan FSA to look at financial institution dangers in ‘world with rates of interest’

Japan’s monetary regulator plans to look at how main banks handle dangers tied to securities funding and foreign-currency liquidity as they regulate to “a world with rates of interest.”

In its annual coverage steerage launched on Friday, the Financial Services Agency pointed to uncertainty over the worldwide financial system and markets at a time when Japanese monetary establishments are getting used to rising charges at residence for the primary time in years.

While the FSA didn’t straight point out dangers stemming from larger charges in Japan, it mentioned “there are adjustments within the monetary atmosphere such because the gradual rise in long-term rates of interest and enhance in volatility within the inventory market.”