This detailed description is a manifestation of our strong determination regarding the future conduct of monetary policy. IV. Current state of the financial system  On the whole, the current state of the financial system in Japan remains severe. It should be noted, however, that at some financial institutions, especially major banks, efforts to improve financial conditions have gradually begun to bear fruit.
The outlook is also being supported by ongoing high levels of investment in infrastructure and the likelihood that the downswing in residential construction will come to an end later this year. Further increases in resource exports and continuing solid growth in public demand will also help.