Bank of Japan Governor Kuroda asked so speak at a Council on Economic and Fiscal Policy 'off the record'.
Kuroda said what he was about to say was sensitive ... and yes, it was.
The Nikkie reports on the February 12 meeting:
"What I'm going to tell you is rather serious," he was quoted as saying. "Countries such as Germany, the U.S. and the U.K. are insisting that banks should set aside capital when holding their own governments' bonds."Under current regulations, banks' holdings of domestic government bonds are not deemed a risk. However, if Germany and other countries get their way, Japanese financial institutions might be forced to significantly increase their capital reserves, based on their JGB stockpiles.
There is (much) more at the article. Well worth a read.
There are other tensions between the Japanese administration and the BOJ, summarised here