Boosting bank profitability is an “urgent” priority, the Bank of Japan says in its latest financial system report, published on April 19.

“Both major and regional banks have seen a net income decline,” the report says, mainly as a result of falling net interest income. Banks have faced a particular squeeze since the BoJ introduced negative interest rates.

Profits still look reasonable by historic standards, the central bank says. At present, banks’ “sufficient capital bases” are supporting