After the lost weekend
Article Abstract:
Japanese banks in 1993 have begun to recover from the economic excesses of the late 1980s. One sign of recovery is that the 21 largest bank lenders canceled problem loans totaling 1.5 trillion yen by Mar 1993. The remaining 15 trillion yen in bad debt justify the banks' reluctance to incur new debt. The government has aided the banks, especially the 11 leading city banks, by cutting interest rates. However, persistent weakness among the nation's banks means means that a large-scale tax-funded bailout cannot be ruled out. Japanese companies' low return on equity will affect the banks' recovery.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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Bust bankers
Article Abstract:
The debt write-off of real estate loans and the inefficient banking structure have created major problems for Japan's banking industry. Experts estimate that about $735 billion of property loans have been given to non-banking institutions with insufficient collateral. Cash flow has been inadequate in the race for upward revaluation of property. Moreover, traditional structural defects have made the banking industry unprofitable and Japanese banks may be unable to meet global standards for capital-adequacy ratios by March 1993.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Lifeboat designs; Japan edges towards bank bail-out plan
Article Abstract:
Serious efforts are on in Japan to provide succor to private financial institutions, which are in deep trouble due to over-lending in the 1980s. Tax cuts, fresh cash flows and the setting up of a quasi-public organization to purchase the real estate mortgages held by banks against loans given, are some of the measures that the government is contemplating. Analysts believe that the government will have to subsidize the new organization if it is to succeed in its goal of reducing the pressure on private banks.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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