Bailouts, Delistings Loom for Japan’s Struggling Local Banks
- Coronavirus may hasten the demise of some local lenders
- BOJ sees risk of rising credit costs, investment losses
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Japan’s long-suffering regional banks face the biggest threat to their survival since the 1990s post-bubble malaise as the coronavirus hammers their few remaining profit drivers.
Analysts and investors are predicting some local lenders will eventually be delisted or bailed out by the government as bad loans climb and investment income evaporates in the wake of the crisis.