Reserve Bank’s guidelines on “Risk Management Systems in Banks” issued in October 1999, indicated that measurement of credit risk through credit rating/scoring receive the top management’s attention.
The Bank of Japan has been pursuing quantitative and qualitative monetary easing (QQE) since April 2013, and the policy has been steadily exerting its intended effects toward achieving the price stability target of 2 percent. It goes without saying that the financial system serves as an important transmission channel through which QQE produces its effects.