Eye of the storm: Will Obuchi bite the banking bullet?
Article Abstract:
Daiwa Securities credit rating has been downgraded by the two leading US ratings agencies. However it has announced a broad alliance with Sumitomo Bank, a joint venture that will be a European-American style investment bank, according to President Yoshinari Hara. Many other banks in Japan are being crushed, and the new government of Keizo Obuchi will have to rapidly remove the weak players and halt the flow of funds to unstable borrowers. The 'bridge bank' plan adopted by the LDP will make it easier to close down the weaker banks, although it will not resolve the bad debt problem.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1998
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Men and boys
Article Abstract:
The prospect of financial sector deregulation is separating the strong banks from the weak ones in Japan. Bank of Tokyo-Mitsubishi's announcement that it will clear 1.1 trillion yen of its bad debts to prepare for deregulation has earned it praise, whilst Hokkaido Takushoku Bank Ltd's attempt to prepare itself through merger has failed, due to its bad debts totalling 935 billion yen. The Japanese government would probably be loath the see Hokkaido Takushoku Bank fail, but it appears to acknowledge that deregulation will produce losers and winners.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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Optimism in the air
Article Abstract:
Japanese banks are beginning to show signs of optimism as they tackle their bad debt problems. Analysts believe positive changes include restructuring in the sector and the clearing of bad debts. Japan's 20 major banks differ in their financial health, with the city banks faring better than others, but analysts now see an end to Japan's bank problems. The prospect of financial sector deregulation in Japan has been a major factor forcing the banks to address their problems.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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