Japan’s interest rate crisis

Can the Bank of Japan handle the consequences for its banking system of higher interest rates?

Can the Bank of Japan handle the consequences for its banking system of higher interest rates? In this article I look at the state of the BoJ’s balance sheet and find it makes grim reading. This matters, because by any measure the BoJ is irretrievably bust with its capital overwhelmed by mark-to-market losses on its massive bond portfolio.