Notably, the amount outstanding in local currency bond markets in Asia as a share of GDP2 in 2018 increased to more than double that in 2000 (Chart 1). Obviously, the rapid expansion of Asian economies has driven the growth of the capital markets in the region.
Unlike these counterparts, the Bank of Japan has been continuously executing on-site examination and off-site monitoring over a wide range of individual financial institutions, including securities firms. The Bank of Japan’s on-site examination makes a thorough and comprehensive assessment of the risks of each financial institution, and strongly encourages the institution to take the necessary action to reduce them, where appropriate.