Japan Urges Local Banks to Improve Asset Portfolio Management
- FSA official says some banks need better ways to manage risks
- Lenders face unrealized losses on foreign bonds as rates rise
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Japan’s financial regulator is urging local banks to better manage risks tied to their $655 billion in securities holdings, even as they remain insulated from the recent turmoil at some US peers.
“There is room for improvement in risk management at some banks,” said Tatsufumi Shibata, a senior official in charge of regional bank oversight at the Financial Services Agency. “Their portfolios have been changing both in their makeup and importance,” he said in an interview, adding it’s necessary to put systems in place to deal with this.