Bank of Japan concerned about wrong-way risk on banks’ cross-holdings
The Bank of Japan is concerned about wrong-way risk on Japanese banks' cross-holdings which has left banks nursing balance sheet losses as Japanese stocks have suffered from the negative effects of the eurozone crisis, according to Atsushi Miyanoya, director-general at the Bank of Japan (BoJ).
Speaking at the Risk Japan conference in Tokyo last week, Miyanoya explained that major Japanese banks have cross-holdings of more than 10 trillion yen ($124 billion) in fellow domestic corporates - a
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