BOJ: Japan’s financial system has been maintaining stability as a whole

• Japanese banks have sufficient capital bases to perform financial intermediation activities appropriately even amid tightening of global financial conditions
• However, vigilance against tail risks continues to be warranted
• Continued monetary tightening and economic slowdowns could prolong the period of stress

These days, financial system reports are mainly just for show. They’re just meant to say “everything is fine” even when there might be danger lurking around the corner. Sign of the times.