However, as the slowdown in overseas economies has become clear since the end of 2018 and Japan's economy was directly hit by the COVID-19 outbreak after the turn of 2020, labor market conditions started to ease as a trend and wages of full-time employees did not see a full-fledged increase.
But improved risk management has meant that lenders and investors can more thoroughly understand their risk exposure and intentionally match it to their risk appetite, and they can more easily hedge unwanted risk. I submit that we are already reaping the benefits of better credit risk management in the relatively modest lender and investor difficulties associated with the current slowdown in the economy.