BoJ flags risk management problems at banks

The Bank of Japan warned that many regional financial institutions have had risk management problems, noting that some have suffered from “a substantial increase in valuation losses” as foreign bond prices fell.

While financial institutions had actively taken on market risk when interest rates were low, they have been “somewhat cautious” in responding to rising global interest rates, the BoJ said in a report after examining 61 financial institutions’ risk management practices and financial