• Kyodo

  • SHARE

Japanese financial regulators said Thursday that they will continue to require banks to maintain support for smaller companies struggling to turn around their businesses, even after a relevant law stipulating rescue measures expires.

Releasing a written statement, financial services minister Ikko Nakatsuka warned commercial lenders not to withdraw their loans or apply stricter lending terms to distressed small and medium-sized firms immediately after the law becomes invalid in March.

In exchange for commercial lenders’ continued support for these firms, regulators will keep in place a special arrangement that allows financial institutions to exclude from their list of bad loans any lending to companies that are making adequate efforts to turn themselves around.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW