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Banking system stable, plays down risk of contagion: Japan government

CNA – Japan’s banking system is stable and the country will not see a contagion from United States (US) and European banking sector woes, Chief Cabinet Secretary Hirokazu Matsuno said yesterday.

He also welcomed Sunday’s decision by top central banks, including the Bank of Japan (BOJ), to bolster the global flow of cash by expanding an existing swap line to ensure lenders have sufficient dollars needed to operate.

“Each country promptly ramped up efforts as risk-aversive moves were seen in financial markets,” Japan’s top government spokesperson told a news conference. Japan’s financial system is stable as a whole,” he said, adding that authorities were watching financial market moves “with a strong sense of alarm”.

The remarks came after Finance Minister Shunichi Suzuki told reporters yesterday the government would continue to “carefully assess” how a weekend rescue deal for Credit Suisse Group would affect Japan’s financial sector.

Japan’s Chief Cabinet Secretary Hirokazu Matsuno speaks at a press conference in Tokyo. PHOTO: AP