• SHARE

The drop in borrowing costs that narrowed Japanese net interest margins to the slimmest in Asia also was a factor in driving bad loans below ¥10 trillion ($80 billion) for the first time, Financial Services Agency data showed last week. That’s helped to prop up earnings for banks that clawed back reserves set aside for soured loans that didn’t materialize.

The biggest banks such as Mitsubishi UFJ Financial Group Inc. have been forced to look overseas for profits as Bank of Japan easing slashed interest margins at home, while regional lenders have been hurt by stagnant rural economies.

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

PHOTO GALLERY (CLICK TO ENLARGE)