Japan regulator to monitor potential BOJ impact on regional banks

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Japan regulator to monitor potential BOJ impact on regional banks
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By Makiko Yamazaki TOKYO (Reuters) - Japan's financial regulator will closely monitor how central bank policy impacts regional banks, as the world's ...

STORY CONTINUES BELOW THESE SALTWIRE VIDEOSTOKYO - Japan's financial regulator will closely monitor how central bank policy impacts regional banks, as the world's third-largest economy approaches the normalisation of its monetary settings after years of massive easing.

The Bank of Japan last month modified its yield curve control scheme and allowed interest rates to rise more flexibly, a measure officially targeted to sustain easing but seen by markets as a prelude to dismantling decades of stimulus. Large banks have shortened the duration of their bond portfolios in anticipation of higher yields, but analysts say some smaller, regional banks do not have such flexibility.

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