Fitch – BOJ’s measures unlikely to improve bank profitability

Bank of Japan (BOJ) introduced yield curve control last month with an intention to help banks and pension funds improve their profitability.

Under the yield curve control program, the bank intends to keep the yield on the 10-yr Japanese government bond at zero percent and engineer a steeper yield curve.

However, ratings agency Fitch says the latest measures could actually end up undermining the efforts to boost the economy. Fitch says weak demand for credit and strength in Yen has hurt both banks and corporate in Japan.