This suggests that the current composition of capital requirements may need to be rebalanced to give the countercyclical capital buffer a more prominent role, without affecting the overall level of capital requirements. Resilience is a key reason why bank profitability matters for financial stability. Bank profits serve as a first line of defence against losses and are the main source of bank capital growth.
The Government expressed that it would formulate measures for strengthening the competitiveness and growth potential of Japan’s economy, and promote them strongly, as well as steadily promote measures aimed at establishing a sustainable fiscal structure.