BOJ says Japan's banking system stable, warns of risks
TOKYO, Oct 21 (Reuters) - Japan's banking system remains stable as a whole but faces risks such as a possible increase in financial institutions' credit costs caused by a delay in the country's economic recovery, the Bank of Japan (BOJ) said on Thursday.
The central bank must also be vigilant to the risk financial institutions could see their securities investment portfolio deteriorate in the event of a rapid market adjustment, the BOJ said in a semi-annual report analysing Japan's banking system. (Reporting by Leika Kihara; Editing by Christian Schmollinger)
