No Floor Under Japan's Banks?

Could a pair of little-known, busted Tokyo credit cooperatives, similar to U.S. credit unions, threaten Japan's financial system? That's the warning Bank of Japan officials have been peddling ever since the central bank proposed a $1.98 billion, taxpayer-funded bailout of the Tokyo Kyowa Credit Assn. and Anzen Credit Assn. three months ago. On Mar. 17, BOJ Governor Yasuo Matsushita told a business group that letting the duo go under would unleash a "systemic risk" to the Japanese financial system.

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