The Bank of Japan has warned that middle risk companies are particularly exposed to an increase in the cost of credit if interest rates go up or the economy rises . Such banks have been relying more heavily on lending because of the low interest rates available , with strong competition among lenders to service them . The bank 's twice - yearly financial system report suggests that financial institutions ' lending rates better reflect the risks involved .
The Bank of Japan has warned that middle risk companies are particularly exposed to an increase in the cost of credit if interest rates go up or the economy slows. Such companies have been relying more heavily on loans because of the low interest rates available, with strong competition among lenders to service them. The bank's twice-yearly financial system report recommended that financial institutions' lending rates better reflected the risks involved.