The US dollar funding cost remains low for Japanese banks since their exposure to the euro area has been limited and their balance sheets have been relatively sound. It is true, though, that Japanese banks faced a moderate increase in US dollar funding costs in the middle of the deepening European sovereign debt crisis from the middle of 2011.
After the introduction of  BIS central bankers’ speeches  11  the new coordinated arrangement of the six central banks at the end of November, however, the US dollar funding market has remained calm, especially for Japanese banks (Chart 21). Money markets have also been relaxed (Chart 22).