TOKYO – Japan’s top seven banking groups need to set aside an additional 400 billion yen ($3.8 billion) to cover risky loans on their books for the six months to September, the Financial Services Agency (FSA) said on Friday.
The figure, based on the regulator’s latest inspections of banks’ loans to their biggest borrowers, shows that while banks have made progress in cutting bad loans, they may have under-assessed the health of some of their most troubled borrowers.
The FSA said the checks, which focused on the records of 135 big borrowers at 11 banks belonging to the seven groups, had downgraded 39 borrowers to riskier classifications of financial health. It upgraded 19.
For this complete story, please visit Japan Bank Inspections Push Up Bad Loan Charges.
