Bank of Japan Deputy Gov. Kiyohiko Nishimura has voiced concerns that Washington's plan to introduce the so-called Volcker rule could negatively impact the liquidity of sovereign debt markets.
"If the Volcker rule were to be strictly implemented as proposed, it could adversely affect the liquidity of overseas sovereign debt," Nishimura said in a speech Monday in Washington.
While U.S. government bonds and most other government entity debts are exempt from the restrictions to be imposed under the proposed financial regulation, the government bonds of foreign countries are not, including Japan, and European nations, he said. (Japan Times)
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