Japanese financial institutions, while they did not directly suffer much from the Crisis, also have increased their capital levels, in line with the stricter requirements at the global level.
2  Under the powerful monetary easing by the Bank of Japan, they are actively taking risks in lending and securities investment, thereby positively influencing the Japanese economy and prices, which reflects in part their increasingly robust capital base. This clearly shows that the stability of the financial system is essential for monetary policy to be fully effective.