Translation: The BOJ isn't going to move away from its easing policies and negative rates any time soon
Japan's FSA announced a proposal today to expand its oversight of regional banks, which will include broad stress tests and heavier focus on lenders' future profitability. This of course comes after the constant barrage by banking associations for the BOJ to move away from negative/low rates which have been eating at banks' profitability in recent years.
Not exactly good news for regional banks but the takeaway here for traders is that the BOJ's ultra-loose policy is here to stay. That means we'll get more of the same from Kuroda and co. for the rest of the year - not that we expected anything else.
