This might, in turn, also lead to an underestimation of how much capital is needed to provide sufficient buffers against losses. There are, in fact, scenarios which could hit the financial system hard.One risk scenario is a faster-than-expected upturn in interest rates. For instance, risk premiums in international financial markets might increase unexpectedly.
With lingering uncertainty about the supply of electricity, firms have pursued various technological innovations and established new business models under the slogans of “creating energy”, “saving energy”, and “storing energy”. Such positive initiatives are expected to create new demand and consequently raise Japan’s growth potential in the medium to long term. Fourth, financial system stability was maintained.