Half of Japan's Regional Banks See Continued Core Biz Losses
Newsfrom JapanEconomy Politics
Tokyo, Sept. 26 (Jiji Press)--Half of Japan's regional banks incurred losses on their core business for at least two years in a row through March 2018, the Financial Services Agency said Wednesday.
Of the country's 106 regional banks, 52 saw their core operations, including loan business, staying in the red for at least two straight years. At 23 of them, the red ink continued for at least five years.
The FSA presented the dismal picture of regional lenders, hit hard by superlow interest rates and declining populations, in its financial administrative policy guidelines for fiscal 2018 and analysis report on the country's financial system and its problems.
The agency will start probes into loans to finance real estate investments, including for apartments, after document tampering and other illegal practices tied to such loans were found at Suruga Bank <8358>, once touted as a highly profitable regional bank.
When necessary, the FSA will carry out on-site inspections focusing on real estate investment loans, officials said.
[Copyright The Jiji Press, Ltd.]