Negative Rates Push Small Japan Banks Into Structured Finance
- Shizuoka Bank seeks to arrange domestic and overseas deals
- ‘Can’t make money’ simply by lending at home, CEO says
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Japan’s regional banks have long been relegated to the sidelines in one of the most lucrative corners of the lending market while regular loans got gradually less profitable. Now some are fighting back.
Shizuoka Bank Ltd. has lined up a network of 40 local lenders that will invest in structured assets such as project finance and non-recourse real estate loans. The idea is that the banks get access to a steady stream of higher-yielding assets, while Shizuoka Bank can earn fees for arranging the deals, joining a market dominated by the nation’s largest banks.