, Columnists
Oil Skeletons Leave the Bank Vault
The Japanese lender's increased disclosure sets an example.
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How do $45 billion of energy loans suddenly appear in a bank's balance sheet? Mitsubishi UFJ Financial Group's exposure to the industry responsible for the most global bankruptcies in the past year jumped to 10.4 trillion yen ($95 billion) from 5.5 trillion yen since its last semi-annual report.
The eye-popping difference is due in part to a change in what the Japanese bank considers energy exposure. This time it added mid- and downstream borrowers, as well as miners. In simple terms, the previous figures excluded many refineries and pipelines.