ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Japan to rein in regional banks' overexposure to bonds

Financial watchdog aims to nudge banks toward lending operations

Japan's financial regulator aims to have regional banks focus more on local lending.

TOKYO -- Japan's financial watchdog will introduce new regulations limiting regional banks' investment in domestic and foreign bonds, with the ultimate goal of steering the institutions away from excessive risk-taking and back to core lending operations.

Under the Financial Services Agency regulations, to be introduced in fiscal 2018, banks will be required to limit valuation losses on their bondholdings to 20% of core capital.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more