Japanese regional lenders will be well able to weather even “large” losses on their foreign bond portfolios thanks to strong capital buffers, a senior banking regulator official said, rebuffing concerns fuelled by U.S. banking woes.
Those strong capital buffers, in tandem with a deposit base that comes largely from households, mark Japan’s tens of regional lenders as different from the failed Silicon Valley Bank (SVB), said Toshinori Yashiki, deputy director-general at Japan’s Financial Services Agency.
“Overseas media seem to be focusing on Japanese regional banks in association with the SVB collapse, but I’d like to emphasise that they are completely different,” he told Reuters in an interview.
Japan’s Regional Banks Resilient to Foreign Bond Losses, According to Regulatory Official
Source : Japan’s Regional Banks Resilient to Foreign Bond Losses, According to Regulatory Official