Japanese Regional Banks Hit Hard by Coronavirus

Economy

Tokyo, Aug. 20 (Jiji Press)--Many Japanese regional banks were hit hard by the coronavirus outbreak in April-June that pushed up credit costs as clients struggled with the health crisis.

The pandemic weighed heavily on regional banks that have already been squeezed by prolonged low-interest rates in the country.

They are expected to face a tougher business environment as the coronavirus is unlikely to be contained anytime soon.

A Jiji Press survey showed Thursday that 56 of the country's 102 regional banks logged net profit declines, while five banks posted net losses. Combined net profits fell 9.4 pct from a year before to 224.8 billion yen.

Combined credit costs surged 49.4 pct to 70.1 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press