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2026-09-17 16:30:09
[Japan Bankers Association Warns of Potential Asset Write-downs and Profit Damage from Rising Government Bond Yields] ⑴ Major Japanese banking organizations have warned that government bond yields may continue to rise, posing a risk of asset write-downs and profit damage. ⑵ Masahiko Kato, chairman of the Japan Bankers Association, said on Thursday that a continued rise in Japanese government bond yields could lead to asset impairment and actual losses. ⑶ Kato said banks may wait until the yield outlook becomes clearer and policy rates peak before increasing their holdings of Japanese bonds. ⑷ The head of Japan's financial regulator said this month that he is closely monitoring whether banks are properly managing the risks of rising interest rates on various aspects of their businesses, including bond holdings, corporate lending, and ultra-long-term mortgage loans.
