Bank of Japan must act swiftly if pandemic delays Japan's recovery: Sakurai

[TOKYO] Bank of Japan board member Makoto Sakurai said on Wednesday the central bank must take "swift and appropriate" action if the prolonged pain from the coronavirus pandemic delays the country's fragile economic recovery.

If the pandemic takes longer than expected to contain, that could push more companies under, saddle commercial banks with bad loans and threaten Japan's financial system.

"At present, financial institutions have sufficient capital so there is no big concern over Japan's banking system. But we need to be prepared to take swift action, with a close eye both on the economy and the banking system," Mr Sakurai said in a speech to business leaders in Fukui prefecture.

REUTERS