April 4, 2019 / 12:54 AM / 21 days ago

BOJ Kuroda: Must scrutinise impact of easy policy on regional banks

FILE PHOTO : Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan October 31, 2018. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank will look carefully at the impact its massive stimulus programme is having on the country’s regional banks.

“Structural factors, such as a dwindling population, are likely to weigh on regional banks’ profits. We must be vigilant to the risk this could erode their capital base and have a negative impact on financial intermediation,” Kuroda told parliament.

Reporting by Leika Kihara and Kaori Kaneko; Editing by Sam Holmes

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