Bank of Japan, Financial System Report, March 2007

The Bank of Japan published its Financial System Report for March 2007 on 13 March. Japan's financial system as a whole has remained stable, the report said.

"The financial intermediation function of the system has improved, and its robustness against shocks of various types has increased.

"As for the soundness of Japanese banks, their capital position has improved in terms of both quality and quantity and the total risk borne by banks has been largely restrained. Regarding profitability, high

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