(Adds comment, detail, background)
By Tetsushi Kajimoto and Takaya Yamaguchi
TOKYO, March 16 (Reuters) - The Group of Seven (G7)
advanced economies must keep a close eye on U.S. banking
problems although the recent failure of two mid-size U.S. banks
is unlikely to have a direct impact on Japan's financial system,
a top ruling party lawmaker said on Thursday.
A crisis of confidence in Credit Suisse this week added to
broader banking sector fears sparked by last week's collapse of
Silicon Valley Bank (SVB) and Signature Bank in the
United States.
In Japan, expectations of a strong post-COVID recovery are
quickly fading amid global monetary tightening and the worries
about banks worldwide.
"If the global economic slowdown intensifies, the G7 must
share awareness of banking issues," said senior Komeito party
member of parliament Isamu Ueda, who heads a financial panel in
the party, part of the ruling coalition.
"We need to carefully watch developments from now on," Ueda
told Reuters, while echoing cautiously optimistic views of
Japanese policymakers.
More than a decade ago, the collapse of U.S. investment bank
Lehman Brothers quickly snowballed into the 2008/09 global
financial crisis.
Leaders of the G7, which is under the chairmanship of Japan
this year, will gather in the western Japanese city of Hiroshima
for a summit in May. The G7 groups Britain, Canada, France,
Germany, Italy, Japan and the United States.
Ueda attended Bank of Japan's policy reviews as deputy
finance minister about two decades ago and debated monetary
policy with the incoming BOJ governor, Kazuo Ueda, when the
latter served as a central bank board member.
"His explanation on monetary policy is easy to understand
and I had an impression that his communication ability is high,"
said Isamu Ueda, who is not related to the new central bank
governor.
"His basic stance is to continue large-scale easing for the
time being, although he may probably respond flexibly to markets
as needed," the lawmaker said.
(Reporting by Tetsushi Kajimoto and Takaya Yamaguchi; Editing
by Bernadette Baum, Robert Birsel)
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