BOJ’s Assets Hit $2.35 Trillion in September

The Bank of Japan said Wednesday its total assets stood at a record 277.10 trillion yen ($2.35 trillion) at the end of September, as the central bank continued its massive asset purchases from financial institutions to boost the economy.

The assets, mainly Japanese government bonds, grew 32.7 percent from a year earlier, the BOJ said in its financial statements for the first half of fiscal 2014.

The outstanding amount of its government bond holdings rose 36.7 percent in the April-September period to 229.31 trillion yen.

The bank’s net income, which corresponds to a company’s net profit, grew 46.7 percent to 587.89 billion yen, helped mainly by interest on the increased bond holdings.

The BOJ has purchased government bonds and other financial assets from banks and other lenders under its ultraloose monetary policy, introduced in April 2013 and aimed at providing sufficient money to the economy.

Its capital adequacy ratio was 7.76 percent as of Sept. 30, up 0.02 point from six months earlier on foreign exchange gains amid the yen’s fall but still below 8 percent, or the level the BOJ considers as sound.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza