BOJ Kuroda highlights need to fund transition toward greener operations

BY Reuters | ECONOMIC | 11/29/21 03:49 AM EST

TOKYO, Nov 29 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Monday it was important to provide financing to industries that require a long period to transition toward greener operations.

"Although responding to climate change is an urgent priority, the completion of full decarbonization will take considerable time," Kuroda said a speech delivered to the Paris Europlace online forum.

"In promoting decarbonization of the economy as a whole, it is important to provide stable support for structural change in sectors and industries where decarbonization will be difficult to achieve in a short period of time," he said. (Reporting by Leika Kihara; Editing by Toby Chopra)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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