Japan set to up legal reserve to safeguard against losses


The Bank of Japan on Tuesday made only the second attempt in its history to increase its capital buffer following a raft of policy actions in the aftermath of the Great East Japan earthquake.

The central bank made an application for authorisation to the minister of finance regarding its capital buffer, the legal reserve. In order "to maintain its financial soundness", the central bank called on the minister to allow it to reserve "an amount equivalent to fifteen-hundredths of its net income" as

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