I wish to make clear that the revision of the Law is not an issue that solely concerns the Bank of Japan, the monetary authorities, and the financial community, but is an issue closely related to the future course of the Japanese economy as a whole.
Allocation risks may thus emerge for the entire loan portfolio that appear paradoxical at first glance: even if the creditworthiness of all enterprises has improved following a long upswing, making each individual loan appear sound, the structure of the loan portfolio may shift to enterprises that are riskier in relative terms.