Blog
Blog
Blog
Blog
14 Apr, 2021 Author Yuzo Yamaguchi
As returns-hungry Japanese banks may lend or invest even more abroad after a record year of 2020, the lenders face rising risk of defaults and market volatility in their growing overseas operations, analysts warn.
Japanese financial institutions have a long history of generating interest income and asset growth from operations outside their home market, which has been battered by a prolonged period of low interest rates and weak credit demand. The risks of global exposures came under the spotlight again in early April, when Nomura Holdings Inc., Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. flagged potential losses of around US$2.4 billion combined that were reportedly related to the downfall of U.S. hedge fund Archegos Capital.