Japanese Bankers Assoc. sanguine despite crises abroad

Investors around the world have been on edge after the collapse of US banks and news of a financial crisis at Credit Suisse but the head of Japan's banking lobby says it is having no effect for now on the Japanese financial system.

Hanzawa Junichi, the chairman of the Japanese Bankers Association, spoke at a news conference on Thursday.

He said that international banks have strengthened their risk controls over capital and liquidity since the 2008 global financial crisis, and believes that European financial institutions and Japanese banks have "generally solid capital ratios."

He referenced the failures of Silicon Valley Bank and New York's Signature Bank, and noted that financial authorities in the US have pledged full protection for depositors.

On the financial crisis at Credit Suisse, he said the market reacted so strongly because it coincided with failures of US banks.

But he also said the situation is volatile and needs close monitoring because inflation, interest rate movements and geopolitical risks are all weighing on the financial markets.