Do you remember that I said "Japan will face the hyper inflation in the future"? Well, this statement is becoming more real than ever nowadays. The actually high inflation which the government and the Bank of Japan (BoJ) seem to manipulate to make the announced inflation rate lower than.
The high price inflation together with the substantially low central bank interest rate, the Japanese Yen (JPY) value has steadily been plunging since the first quarter of this year 2022 in the Foreign Exchange (FX) market. This will eventually depreciates the value of the Japanese sovereign bonds (government debts) in the international financial market.
The major holders of Japanese sovereign bonds are the BoJ and the major private banks in Japan. When the bond value goes down, the portfolio of these Japanese private banks will be depreciated. Combining the poor business performance of Japanese banks with the JPY value plunge, the havoc of their depositors attempting to withdraw their JPY amount from their saving account.
Following this logics, it is quite plausible that the deposit blockage will be likely to take place. This is why some economists have already forecasted the considerable Japanese economic downfall as well as the reasonably high possibility of these banks blocking these saving account from their money withdrawal.
Perhaps, they might not block their customers' account but may face bankruptcy, the recapitalisation by government, or furthermore annexations to a bigger private bank. This infers the risk of relying on saving income in the JPY saving account and holding the assets with their value based on JPY in the near future. The real value of JPY is steadily falling so it is wise to start splitting the risk from now on.
