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Japan's Biggest Banks Unveil Targets for Cutting Shareholdings

  • Firmest commitment to boost governance, reduce market exposure
  • Mitsubishi UFJ and Mizuho beat profit estimates, SMFG misses
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Japan’s biggest banks unveiled targets for cutting their shares in client companies, their firmest commitment yet to improve corporate governance and reduce their exposure to stock-market gyrations.

Mizuho Financial Group Inc. will lower its so-called cross-shareholdings by 40 percent in coming years, it said in a statement Friday. Sumitomo Mitsui Financial Group Inc. said it plans to reduce its ratio of stock holdings to common equity Tier 1 capital by half within five years. Mitsubishi UFJ Financial Group Inc. said it will trim its holdings to 10 percent of Tier 1 capital.