Japan’s financial environment continues to ease Fortunately, so far in Japan, unlike in the United States and Europe, the markets from which banks and firms raise their funds remain in a stable condition, without strains (Charts 3 and 4). Looking at firms’ funding conditions, they have actually continued to ease.
Third, as I mentioned earlier, domestic demand and business sentiment of the nonmanufacturing sector have been firm in the current phase on the back of favorable corporate profits and improvement in the employment and income situation.