Japan Regulator to Evaluate Banks’ Commercial Property Exposure
- FSA cites rate hikes, overseas markets slump in sector
- More efforts to boost competitiveness of asset managers
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Japan’s financial regulator plans to review major banks’ exposure to overseas commercial real estate, reflecting global alertness to troubles in the sector.
The area is among the credit risks to watch this year, according to the Financial Services Agency in its annual policy guidance released on Tuesday. The regulator cited interest rate rises and deterioration in related markets overseas as reasons to assess the “situation of loans” made in this sector.