Safety in numbers: bail-out heigthens Japanese banking fears
Article Abstract:
Four of Japan's biggest commercial banks are trying to bail out financially troubled Taiheiyo Bank because of its outstanding loans to the collapsing real estate industry. The effort of Sakura, Fuji, Sanwa and Tokai to rescue a small financial institutionreflects a weakened Japanese banking industry. All four banks are helping prop up profits of Taiheiyo by granting it billions of yen in low-interest support loans. Analysts are worried that the reason four banks are needed to rescue a small regional bank is because none of Japan's major banks are capable of absorbing any of the small banks.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Fasten your seatbelts...
Article Abstract:
The Japanese banking industry is in deep trouble as a result of its past unbridled expansion activities and extension of credit to businesses. The plunging of thestockmarket levels in Tokyo on the Nikkei-225 average from 40,000 points at theend of 1989 to about 14,000 by Aug 1992 also pulled down the value of hidden assets of Japanese banks from almost 40 trillion yen to nearly 15 trillion yen.The banks' real estate loans are also a big problem as prices of commercial andreal estate properties continue to plummet.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
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