Japan's Financial Authorities May Hold Meeting On Friday Amid Banking Crisis - Reports

Representatives of the Japanese Finance Ministry, the Bank of Japan and the Financial Services Agency are milling the possibility of holding a meeting on Friday, March 17, to exchange information on the situation in financial and capital markets amid the ongoing banking crisis, media reported

TOKYO (UrduPoint News / Sputnik - 17th March, 2023) Representatives of the Japanese Finance Ministry, the Bank of Japan and the Financial Services Agency are milling the possibility of holding a meeting on Friday, March 17, to exchange information on the situation in financial and capital markets amid the ongoing banking crisis, media reported.

The last time the financial representatives convened a similar meeting was in September 2022, against the backdrop of the weakening national currency, the yen, Japanese newspaper Nikkei reported, citing informed sources.

Meanwhile, Japanese Finance Minister Shunichi Suzuki said that Tokyo "continues to interact with the authorities of other countries" on the issue.

"We are following closely the trends in both domestic and foreign financial markets and the impact on the stability of the financial system," Suzuki told a press conference.

Last week, California regulators shut down SVB, which became the largest US bank to collapse after the last financial crisis, in 2008. SVB's collapse is believed to be connected with the increase in interest rates by the Federal Reserve System, which caused the impairment of assets on the balance sheets of many financial institutions, and with poor risk management. After that, the US authorities also closed New York-based Signature Bank because of systemic risks.