What nobody dares to say about the banking crisis

The Bank of Japan's (BOJ) decision to reduce its official discount rate to 0.5% on Sep. 8, 1995, was necessary to boost the country's economy. The adverse repercussions of the prevailing economic crisis are most evident in the financial sector, which is characterized by a growing pile of bad debts and successive bankruptcies. The value of BOJ assets have greatly dwindled due to the absence of collateral or any other form of security for the growing volume of rescue financing.