Abstracts » Business

The urge to merge

Article Abstract:

Portugal's banking industry has seen amove toward modernisation and has been made more open to foreign investors. A trend towardmergers and the creation of large groups is under way, ending the domination of small bodies.Banco Comercial Portugues (BCP) is bidding for Banco Portugues do Atlantico (BPA), whileAntonio Champialimaud, an industrialist, is seeking to acquire a 50% stake in Banco Totta eAcores. The largest banking group in Portugal is Caixa Geral de Depositos, which is state-ownedand holds a 24% stake in the market.

Portugal

---

Japan: Daiwa a sub-plot

Article Abstract:

Daiwa Bank ranks 19th among world banks. The bank's problems have affected the Tokyo stock market less than one could expect. The market is more concerned about action the government may take to help the banking industry which is affected by bad debts. The debts arose from a real estate and share price crash in the 1990s. A solution has been delayed because the government is reluctant to use public funds to help the banking industry and housing loan companies.

Mortgage bankers and correspondents, Mortgage Bankers, Real Estate Credit, Economic policy, Mortgage banks

---

Japan: painful process

Article Abstract:

The Japanese banking industry faces a bad debt problem which is especially severe for housing loan companies. The government has reportedly finalised a plan to liquidate the companies which have 11 trillion yen loans, almost 75% of which are bad debts. A new body will be set up to take over the bad debts, with finance coming from the banking industry. Banks will take over bad debts and write them off, and this will affect the banking industry's profits.

Some parts © 2012 Advameg, Inc.