BOJ Kuroda Vows to Do Whatever to Contain Virus Impacts

Politics

Tokyo, May 14 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda on Thursday stressed the central bank's resolve to do anything it can to contain the economic and financial impacts of the novel coronavirus pandemic.

In an online lecture hosted by the Research Institute of Japan, a Jiji Press affiliate, Kuroda cited "deterioration in financial positions of large firms, as well as small and medium-sized ones" due to falling sales and profits amid the epidemic.

"With the economy in an increasingly severe situation, the stress on the financial system has been growing in Japan, and it is necessary to pay further attention to the circumstances," he added, warning against the possibility of banks' financial soundness getting hurt by deteriorating corporate earnings and the financial system becoming incapable of playing its function as a result.

"The top-priority task for the time being is to contain the spread" of the coronavirus "as soon as possible and protect employment, businesses, and people's livelihoods until that happens," he said.

In the meantime, the BOJ will try to "ensure smooth financing and maintain stability in financial markets," and to this end, it is "determined to do whatever" it can as a central bank while firmly cooperating with the government and foreign authorities, Kuroda said.

[Copyright The Jiji Press, Ltd.]

Jiji Press