BOJ’s Masai: banks’ structural problems are separate from monetary policy

TOKYO (Reuters) – Bank of Japan board member Takako Masai said on Thursday structural problems that are making it more difficult for Japanese banks to remain competitive should be discussed separately from monetary policy.

Masai acknowledged that easy monetary policy has lowered banks’ lending margins but said this has been going on since the 1990s, Masai told business leaders in Matsumoto, central Japan.

It is important for banks to adjust their business in response to Japan’s declining population and the emergence of fintech, she said in a speech posted on the BOJ’s website.

Masai also said she thinks upward momentum in prices remains intact and the BOJ should stick with its current easing program.