AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
TOKYO, Dec 2 Asia Pulse - The capital adequacy ratio of the Bank of Japan fell below the watershed level of 8 per cent for the first time in 12 years to 7.62 per cent for the first half ended September 30, due mainly to an increase in outstanding central bank notes, according to a financial statement released Friday by the bank.
If the amount of outstanding bank notes keeps increasing in the second half, the BOJ may be forced to reduce its "dividend" to be paid to the nation's coffers from the profits generated from managing assets accepted in exchange for issuing bank notes on behalf of the government.
The capital adequacy ratio at the BOJ fell 1 per cent year on year in the first half, and the purchase of stocks from commercial banks to lighten their stockholdings, which began Friday, may lead to a fall in net income, further deteriorating the bank's capital adequacy ratio.
The BOJ's capital adequacy ratio is computed by dividing net assets, including core capital as well as legal and special reserves, by the average amount of ...