ID :
42836
Tue, 01/27/2009 - 21:05
Auther :
Shortlink :
https://oananews.org//node/42836
The shortlink copeid
World economy`'falling off a cliff,` warns BOJ chief Shirakawa
TOKYO, Jan. 27 Kyodo - Bank of Japan Governor Masaaki Shirakawa warned on Tuesday about the current
sharp deterioration in the global economy, describing the downturn as if it
were ''falling off a cliff.''
Delivering a speech in Tokyo, the central bank chief also said that in order to
get the world economy back onto a growth path, authorities and financial
institutions must work to ''eliminate excessive leverage'' that emerged as the
economy had expanded with investors borrowing funds in a way that could magnify
their returns.
The process of deleveraging, Shirakawa said, must take time so as not to
trigger any adverse swing-over impact on the economy. ''We must take a
difficult balance,'' he said.
As for the business model of banks and other financial institutions, the BOJ
head called on them to improve their liquidity risk management, saying, ''It is
possible that liquidity suddenly dries up.''
==Kyodo
sharp deterioration in the global economy, describing the downturn as if it
were ''falling off a cliff.''
Delivering a speech in Tokyo, the central bank chief also said that in order to
get the world economy back onto a growth path, authorities and financial
institutions must work to ''eliminate excessive leverage'' that emerged as the
economy had expanded with investors borrowing funds in a way that could magnify
their returns.
The process of deleveraging, Shirakawa said, must take time so as not to
trigger any adverse swing-over impact on the economy. ''We must take a
difficult balance,'' he said.
As for the business model of banks and other financial institutions, the BOJ
head called on them to improve their liquidity risk management, saying, ''It is
possible that liquidity suddenly dries up.''
==Kyodo
