TOKYO Nov 28 The Bank of Japan said on
Wednesday it posted its biggest net loss on record at the end of
September as declines in stocks weighed on its equity holdings.
The BOJ's capital-to-asset ratio, a measure of financial
health, also fell to the lowest level in more than three decades
as the amount of bank notes increased, which could raise
questions about the limits of the central bank's purchases of
The central bank booked a net loss of 232.9 billion yen
($2.83 billion) in the first half of the fiscal year that
started in April, which was 96.6 billion yen more than it lost
in the same period a year earlier.
Losses on equities that the BOJ bought several years ago to
stabilise financial markets widened to 152.0 billion yen in the
fiscal first half from a 73.7 billion yen loss in the same
period a year earlier, according to its financial results.
The capital-to-asset ratio stood at 7.12 percent at the end
of September, the lowest since 6.30 percent at the end of March
The capital-to-asset ratio has remained below 8 percent, the
minimum level the BOJ deems desirable for fiscal health, for 10
straight years as it adds non-conventional assets to its balance
sheet to pump money into an economy struggling to shake off
Unrealised losses on exchange-traded funds (ETFs) stood at
46.9 billion yen in September versus unrealised gains of 84.7
billion yen at the end of March.
The BOJ said it had unrealised gains of 4.0 billion yen on
its holdings of real estate investment trusts (REITs), up from
200 million yen in March.
The BOJ has been buying ETFs and REITs under an asset buying
scheme that it launched in October last year to support the
economy and fight deflation.
Japan's Nikkei 225 share average has rebounded about
5 percent since end September.