Japan Scrutinizes Regional Banks' Fund Buying as Risks Rise
- FSA talking to bankers about investment trusts held: officials
- Regional banks ‘are taking on more risks’: S&P’s Yoshizawa
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Japan’s regional banks, desperate to boost returns with interest rates around zero, are coming under scrutiny from regulators as they increase purchases of risky investment trusts.
The Financial Services Agency has been talking to bankers to gauge whether the firms have the knowledge and structure to handle those products, which cover everything from stocks to real estate, according to its officials. Some of the lenders don’t appear to, the regulators say. The FSA has told them to strengthen their risk management, for example by adding staff if needed, said the officials who asked not to be identified due to the agency’s policy.