BOJ; Buying Bank Sub Debts

The Bank of Japan announced that it plans to purchase subordinated debts issued by Japanese major banks up to JPY 1 trillion .

With the deterioration of real economy and plunging Nikkei stock prices, the balance sheets of Japanese banks are under pressure. Through the purchase of sub debts, BOJ will help enforce bank capital so that banks can continue to lend money to Japanese corporations.

Some say this action shows BOJ's determination to support the financial system, others say JPY 1 trillion is not enough.