[quote=http://www.bloomberg.com/news/articles/ ... an-program]In Japan, where the sub-zero rate became effective in February, a survey of senior loan officers showed this week that banks’ profit margins from lending to highly rated companies dropped to the lowest level in almost a decade. The BOJ’s quarterly survey also showed that demand for credit from large, medium and small-sized firms all dropped.
“This wouldn’t address the underlying structural problem for the banks, which is not a loan supply issue but a demand issue,” Jefferies Group LLC analysts including Mac Salman wrote in a report.
...
Takashi Shiono, an economist at Credit Suisse in Tokyo, said he expects the BOJ to introduce the negative rate for lending in conjunction with a cut to the rate on excess reserves.
“The BOJ can say this will help the whole economy because the banking sector is one of the most vital channels for monetary policies,” Shiono said Friday.
UBS AG’s Group’s Daiju Aoki said demand for loans from companies has been weak to begin with, so finding borrowers will remain challenging.
“Such measures by the BOJ alone may not work effectively, unless it works together with the government,” Aoki said. “A policy mix with fiscal spending or the growth strategy which spurs private demand is needed.”[/quote]
It's the demand, stupid!
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MachineGhost
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It's the demand, stupid!
Last edited by MachineGhost on Mon Apr 25, 2016 5:17 pm, edited 1 time in total.
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Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!