BOJ, FSA Agree To Keep Financial System Stable

Senior officials at the Bank of Japan and the Financial
Services Agency Wednesday agreed to continue to work together to ensure the
financial system continues to function and offers support to the real economy,
the BOJ said.

The BOJ and FSA officials held “the twelfth meeting of the “Council for
Cooperation on Financial Stability” in a conference call to exchange views on
the current situation and markets. Officials included the Commissioner of the
FSA and the Deputy Governor of the BOJ.”

“The FSA and the BOJ have confirmed that the Japanese financial system has
been maintaining stability on the whole, and that it is important for financial
institutions to perform effective financial intermediation,” the BOJ said.

“In addition, the FSA and the BOJ agreed that they would develop necessary
procedures toward temporary exemption of the outstanding balance of financial
institutions’ current accounts at the BOJ from the leverage ratio exposure
measure in order to facilitate the implementation of monetary policy,” it added.