The Bank of Japan revealed that the banks of the nation are under strong downward pressure. This was disclosed in a monthly assessment that said that the financial position of the banks had lowered for the first time since the October of last year.
The main reason for this abrupt downfall is obviously the devastating earthquake that hit the nation and tore it into pieces.
Japan is one of the largest economies of the world and there are many countries which are dependent on it for acquiring many parts for their manufacturing processes. These processes were affected due to the earthquake and this is what has made the entire economy of the nation suffer.
According to the officials at the central bank, the economy of the nation shall make its ways on the road of recovery only after the strain of the supply ease up a bit as well as when the demand increases after there has been the reconstruction of the lost entities.
The report was also of the view that when the exports increase at a steady rate and the expenses get incurred. This shall help in the stabilizing of the economy of the nation and shall help it to become one of the leaders again. As a result of the increase and the stabilization of the production, the private consumption shall also become gradually stable.