In an attempt to stabilise financial markets, the Bank of Japan (BoJ) injected 15 trillion yen (£114 bn) into the banking system. This is the largest single operation ever carried out by the BoJ. Nikkei closed today with a 6.2 per cent loss.
This intervention is meant to face the possibility of Japanese consumers withdrawing their savings to face immediate individual costs, thus leaving banks short of liquidities.
In order to support businesses, the bank also decided to expand its asset buying fund by 5 trillion yen (£37.8bn) whilst keeping its interest rates close to 0.
Analysts worry that the country's economy could fall back into recession as a result of the catastrophe. Fears also arise over the island's debt, the highest in the industrialised world. Japan's credit rating was downgraded by Standard & Poor's in January and Moody's was recently threatening to emulate this.
However, most of the country's debt is funded by local savings which leads specialists to discard the possibility of any imminent fiscal crisis.