BOJ balance sheet shrinks

BREAKING: The Bank of Japan's total assets declined -$98 billion in Q3 2026, to $3.95 trillion, the lowest since Q1 2020. Since the Q1 2024 peak, the BoJ has reduced its balance sheet by -$828 billion, or -17.4%. As a result, the BoJ's Asset-to-GDP ratio has fallen -28 percentage points over this period, to 94%, the lowest since 2018. Furthermore, Japanese government bond holdings fell -$90 billion in Q3, to $3.19 trillion, the lowest since Q1 2020. Since the 2023 peak, JGB holdings have dropped -$556 billion, or -14.9%. The BoJ also sold -$568 million in equity ETFs and J-REITs last quarter, bringing its holdings down to $233 billion, the lowest since Q3 2021. The Bank of Japan continues to unwind its balance sheet.