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FSA’s sweeping reforms, BoJ cuts regional assessment

Proposals to allow regional banks to diversify into non-banking business could help to reduce their overreliance on dwindling interest income. But in a sector famed for its conservatism, business models are unlikely to change quickly. Meanwhile, the Bank of Japan downgraded its assessment of the health of regional economies drastically this week. Even so, it would be a huge surprise if the Bank decided to ease policy at the meeting on Tuesday.

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