Banking sector problems in the United States and Europe were caused by liquidity and interest rates risks, but won't have an impact on Japan's economy and financial system for now, Economy Minister Shigeyuki Goto said Tuesday.
Goto spoke in an interview after U.S. regulators seized First Republic Bank and sold its assets to JPMorgan Chase & Co., in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis and draw a line under lingering banking turmoil.
"What happened to the West involved risks of liquidity and interest rates. Financial institutions and authorities will need to respond firmly to liquidity risks," Goto said. "I don't see the U.S. financial sector facing big problems."