Recent supervisory guidance stressed that banks should set a target for capital that should be appropriately aligned with the risk profile and risk-management capability of the bank. Bank supervisors will assess the adequacy of this target level of capital in their examinations of banks, and banks should defend their target level of capital to the market.
In addition, as for exchange-traded fund (ETF) purchases, from the same aspect of enhancing the sustainability of the monetary policy framework, the Bank made it clear that it might increase or decrease the amount of purchases depending on market conditions, while maintaining the annual pace of increase at about 6 trillion yen.