Tokyo, March 17 (Jiji Press)–Financial assets held by households in Japan as of the end of 2020 rose 2.9 pct from a year earlier to 1,948 trillion yen, hitting a record high for the second straight year, Bank of Japan data showed Wednesday.
While the government provided a special benefit of 100,000 yen to every resident of the country to mitigate the impacts of the novel coronavirus crisis, many people apparently held back consumption and boosted cash on hand and deposits at banks.
The balance of cash and deposits, which account for a majority of the total household financial assets, grew 4.8 pct to 1,056 trillion yen at the end of last year.
Investment trust funds gained 5.1 pct, and shareholdings and other securities increased 0.7 pct, reflecting higher stock prices.
Nonfinancial companies’ financial assets were up 6.2 pct to 1,275 trillion yen, also hitting a record high as the companies increased their cash reserves through bank loans and other means due to growing uncertainty over the future amid the pandemic.
The balance of Japanese government bonds, including short-term securities, rose 7.8 pct to 1,220 trillion yen, as the government allocated a huge amount of budget for measures against the pandemic.