Some in BOJ warned of hit to bank profits from easy policy - March minutes

FILE PHOTO: A security guard walks past in front of the Bank of Japan headquarters in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato/File Photo - Copyright Issei Kato(Reuters)

By Reuters

Published on 08/05/2019 - 02:34•Updated 20/04/2024 - 02:22

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TOKYO (Reuters) - A few Bank of Japan board members said the central bank must pay attention to the impact that its prolonged ultra-loose monetary policy was having on regional banks' profits, minutes of their rate review in March showed on Wednesday.

The negative impact of ultra-easy policy on regional banks' profits and equity capital could "gradually materialise" and prompt more banks to take excessive risks to secure profits, those board members were quoted as saying.

At the two-day rate review that ended on March 15, the BOJ kept monetary policy steady despite cutting its assessments on exports and output amid heightening global economic risks.

(Reporting by Leika Kihara; Editing by Chang-Ran Kim)

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