BoJ’s Yamaguchi warns of ‘vicious cycle’ from de-leveraging of European banks
Hirohide Yamaguchi, a deputy governor of the Bank of Japan, on February 2 warned that the effects of the de-leveraging of European banks in response to higher capital requirements could spill over into the global economy.
At a meeting with business leaders in Kagawa, Japan, Yamaguchi said that while liquidity measures carried out by the European Central Bank last December to massively provide the financial market with extraordinarily long-term funds for a period of three years had helped
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