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Japan banking regulator says sees no big impact from BOJ shift for now

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Kurita is the new head of the FSA and he mentions that:

“With long-term interest rates staying around 0.6%, I don’t think it will have much of an impact on Japanese banks. Unless rates surge in a short period of time in Japan the way they did in the US, I believe the banks can handle the situation.”

I think the level that he is highlighting is a bit telling in where the BOJ is planning to allow 10-year JGB yields to linger for now. As we have seen so far this week, the threshold seems to be around 0.65%.

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