risk on bank balance sheets (i.e. yen interest rate risk on loans, security holdings and deposits) has reduced, the interest rate risk specific to the securities portfolio needs to be JGBs by banks are still sizeable. Other securities, such as local government bonds, corporate bonds, and stocks, are also sensitive to interest rate changes and the policy defined in the FSA's “Overview of Major Banks' Financial Results". IA Regional Bank stands for Internationally Active Regional Banks. The red dotted line represents the minimum percent for internationally active banks. structure to the new interest rate environment. In 2020, JFSA announced the for insurance companies, resulting in smaller maturity mismatches. In the past few years, accounting basis while carefully managing their balance sheets.21 At the same time, non- residents have become more active on both sides of repo transactions, borrowing bonds expanding arbitrage opportunities associated with changes in monetary policy. Among NBFls22, life insurance companies, which accounted for around 20 percent of total NBFI assets in March 2025, recorded higher net income in March 2025 compared to the deposits to improve interest rate risk management. See Shizuoka Financial Group 2025. 21 Flow of funds statistics indicate that debt securities holdings declined from JPY 2.0 trilion in March 2022 to JPY 1.7 trillion in March 2025. As the statistics apply mark-to-market valuation to financial assets, the decline may reflect the impact of rising interest rates. consistently accounted for around 35 percent of total financial institution assets since 2014, according to the flow of funds
原图定位