Nationalisation required for Japanese bank recovery, says Fitch

A partial nationalisation of Japan's ailing banks may be the only way to resolve the country's economic woes, with recent efforts by individual institutions to restructure their balance sheets unlikely to lead to an autonomous recovery in the banking sector, according to a report by ratings agency Fitch Ratings.

Despite recent initiatives from three of the four major Japanese banks – Mizuho, Sumitomo Mitsui Financial Group (SMFG) and UFJ – to strengthen capital provisions and write off bad loans, there is little prospect of a meaningful recovery in the near to medium term, said Fitch analyst and report author Reiko Toritani.

In January, Mizuho said it expected to post a net loss of around ¥2 trillion in the year to March – making it the largest loss in Japanese corporate history - after drastically

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here