bank of japan ’ s february report of recent economic and financial developments1 bank of japan, 12 february 2002. * the bank ’ s view * * japan ’ s economy continues to deteriorate. with regard to final demand, net exports ( real exports minus real imports ) tend to decrease at a slower pace since the decline in exports is moderating. meanwhile, business fixed investment continues to decrease and private consumption is also weakening. moreover, housing investment remains sluggish and public investment is on a downward trend. amid this weak final demand, inventory adjustment is progressing in many industries including electronic parts as a result of the large production cutbacks to date. reflecting this development, the rate of decline in industrial production is contracting. however, firms maintain their stance on reducing personnel expenses under strong excessiveness in employment. hence, the severity of employment and income conditions of households is rather intensifying, with unemployment continuing to rise and winter bonuses having decreased distinctly. turning to the outlook, with regard to exporting conditions, the synchronized inventory adjustment in it - related goods worldwide is coming to an end. as a consequence, there seem to be signs that exports and production of the east asian economies have stopped declining. moreover, the yen has been depreciating recently. under these conditions, exports are expected to stop decreasing and to turn up toward the middle of this year. however, exports will recover only modestly, while the recovery in overseas economies is weak and final demand for it - related goods worldwide remains stagnant for the time being. as regards the u. s. economy, there are increasing number of indicators suggesting that the economy will hit the bottom, but there still remain many uncertain factors. therefore, including this aspect, developments in overseas economies continue to require close scrutiny. meanwhile, with respect to domestic demand, business fixed investment is expected to follow a downtrend reflecting the fall in corporate profits. private consumption is also likely to be weak mainly due to worsening employment and income conditions. thus, while domestic private demand generally weakens, government spending is basically projected to follow a downward trend. consequently, it may take quite a while for economic activity as a whole to stop declining, even though the decrease in industrial production may move toward cessation against the background of the improvement in exporting conditions and progress in inventory adjustment. overall, japan ’ s economy will continue to deteriorate, but the pace is expected to moderate gradually with the downward pressure from exports and inventories aba

”, journal of banking & finance, no 55, pp. 361 - 79. 2. see ssm supervisory statement on governance and risk appetite, ecb, june 2016. 3. joint esma and eba guidelines on the assessment of the suitability of members of the management body and key function holders under directive 2013 / 36 / eu and directive 2014 / 65 / eu ( 2021 ). 4. see crd, recital 60, article 88 ( 2 ) and article 91 ( 10 ) of the directive 2013 / 36 / eu of the european parliament and of the council of 26 june 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending directive 2002 / 87 / ec and repealing directives 2006 / 48 / ec and 2006 / 49 / ec ( oj l 176, 27. 6. 2013, p. 338 ) ; crr, article 435 ( c ) of the regulation ( eu ) no 575 / 2013 of the european parliament and of the council of 26 june 2013 on prudential requirements for credit institutions and investment firms and amending regulation ( eu ) no 648 / 2012 ; and joint esma and eba guidelines on suitability, article 435 ( 2 ) ( c ) of the regulation ( eu ) no 575 / 2013 of the european parliament and of the council of 26 june 2013 on prudential requirements for credit institutions and investment firms and amending regulation ( eu ) no 648 / 2012.