BOJ completes bank stock offloading
The post BOJ completes bank stock offloading appeared on BitcoinEthereumNews.com. The Bank of Japan has completed the offloading of bank shares it began acquiring in October 2007 from beleaguered banks during the early 2000s banking crisis. The BoJ is now considering shifting its focus to exchange-traded funds. According to the BOJ’s balance sheet report, the shares acquired from besieged banks declined from 2.5 billion yen ($17.4 million) in early July to zero as of July 10. The bank hoped to finish offloading the shares by March next year. The BOJ has also experienced a continued decline of approximately 10 billion yen in bank shares per month in recent years, which pushed its deadline for offloading the shares to this time of the year. BOJ fulfills its milestone of offloading bank shares The bank’s offloading of shares is meant to work without disrupting financial markets, despite taking a considerable amount of time. The BOJ began accumulating the assets as a crisis response measure, which followed the introduction of the huge quantitative tightening program years later, that Governor Kazuo Ueda’s board is currently working towards withdrawing. At two separate times, the BOJ purchased roughly 2.4 trillion yen ($16.3 billion) of stocks from private banks between 2002 and 2010. The initiative was aimed at helping stabilize the financial markets at the time, which was considered a bold move for a major central bank. Japan’s central bank initiative of purchasing stocks from the beleaguered banks started in November 2002 after a banking crisis in the same year that resulted in a decline in bank shares for about three years. The BOJ continued acquiring bank shares for another two years to help banks tackle their non-performing loans. The bank also doubled down on its purchases of stocks held by other banks from February 2008 to April 2010 during the global financial crisis. The BOJ has…
The post BOJ completes bank stock offloading appeared on BitcoinEthereumNews.com.
The Bank of Japan has completed the offloading of bank shares it began acquiring in October 2007 from beleaguered banks during the early 2000s banking crisis. The BoJ is now considering shifting its focus to exchange-traded funds. According to the BOJ’s balance sheet report, the shares acquired from besieged banks declined from 2.5 billion yen ($17.4 million) in early July to zero as of July 10. The bank hoped to finish offloading the shares by March next year. The BOJ has also experienced a continued decline of approximately 10 billion yen in bank shares per month in recent years, which pushed its deadline for offloading the shares to this time of the year. BOJ fulfills its milestone of offloading bank shares The bank’s offloading of shares is meant to work without disrupting financial markets, despite taking a considerable amount of time. The BOJ began accumulating the assets as a crisis response measure, which followed the introduction of the huge quantitative tightening program years later, that Governor Kazuo Ueda’s board is currently working towards withdrawing. At two separate times, the BOJ purchased roughly 2.4 trillion yen ($16.3 billion) of stocks from private banks between 2002 and 2010. The initiative was aimed at helping stabilize the financial markets at the time, which was considered a bold move for a major central bank. Japan’s central bank initiative of purchasing stocks from the beleaguered banks started in November 2002 after a banking crisis in the same year that resulted in a decline in bank shares for about three years. The BOJ continued acquiring bank shares for another two years to help banks tackle their non-performing loans. The bank also doubled down on its purchases of stocks held by other banks from February 2008 to April 2010 during the global financial crisis. The BOJ has…
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