Bank of Japan derivatives purchases threaten already low equity ratio

The BoJ's latest inflation targeting weapon could challenge its balance sheet strength

Bank of Japan

The proposal to expand the Bank of Japan's asset purchase programme to include derivatives may prove challenging for the bank's balance sheet as it faces a historically low equity ratio.

The Bank of Japan's nominee governor, Haruhiko Kuroda, said the bank may buy derivatives to pursue its inflation target of 2% in the next two years. The unconventional policy stance comes as a re-enforcement of the new leadership of the central bank under the Liberal Democratic Party (LDP) government whose

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here