Why Japanese Banks Are Well Placed to Withstand Banking Crisis
- Lenders have capital buffers for losses on foreign bonds
- Sticky deposits, ample dollar funding show concerns overblown
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Financial turmoil following the collapse of three US lenders and the emergency takeover of Credit Suisse Group AG has fueled questions over whether Japanese banks might be at risk from the fallout.
Shares of the nation’s banks have been among the hardest hit in Asia since the crisis emerged this month. Smaller lenders, which have piled into US Treasuries in recent years, have copped the biggest blows on concern that they may face the sort of losses on bond holdings that helped to bring down Silicon Valley Bank.