According to an estimate by Japan’s Financial Services Agency (FSA) Japanese financial institutions have lost over 230 billion ¥ (Yen) or about 2 billion dollars this fiscal half year because of degradation of the US sub-prime investments. This is about 17% of its total exposure of 1.3 trillion ¥ ($12 billion) in the securitized instruments as of September 2007.
Official estimate by the Japanese financial supervisors on the impact of US sub-prime crisis and came after the Japanese largest financial lender Mitsubishi UFJ Financial Group reported its half yearly results. FSA had surveyed 575 financial institutions in Japan primarily to gauge the extent of sub-prime related exposure and its impact of their performance. These included 10 major banking groups, 110 regional banks and a total of 455 cooperative financial institutions.
Out of the 1.3 trillion Yen exposure 1.2 trillion is to the top 10 banking groups. According to Nikkei, Japan's leading six banking groups are likely suffer a total loss in excess of 300 billion yen ($2.75 billion) due to bad debts originating from the slump in the U.S. housing market. Regional banks were less affected. They were hit by about 15 billion yen loss.
The six leading lending institutions of Japan are:
The above six banks have written-down 115 billion yen ($1.1 billion) as bad debt. All of these, including, the top three banks, which are also known as megabanks, have shown a decline in profit so far this year.
Mitsubishi UFJ Financial Group Inc., Japan's largest bank, has reported a loss of 260 billion yen in subprime mortgage related investments. The exposure of Mizuho, Japan's second-largest bank, is about 800 billion yen in the US mortgage-linked securities as of the end of September. 575 Japanese banks and credit unions held subprime-related products worth $1.2 billion in book value and recognized $985 million in unrealized valuation losses.
Yoshimi Watanabe, Minister of State for Financial Services and Administrative Reform, said at a briefing in Tokyo:
According to Seiji Nakamura, a policy board member of the Bank of Japan, :
Official estimate by the Japanese financial supervisors on the impact of US sub-prime crisis and came after the Japanese largest financial lender Mitsubishi UFJ Financial Group reported its half yearly results. FSA had surveyed 575 financial institutions in Japan primarily to gauge the extent of sub-prime related exposure and its impact of their performance. These included 10 major banking groups, 110 regional banks and a total of 455 cooperative financial institutions.
Out of the 1.3 trillion Yen exposure 1.2 trillion is to the top 10 banking groups. According to Nikkei, Japan's leading six banking groups are likely suffer a total loss in excess of 300 billion yen ($2.75 billion) due to bad debts originating from the slump in the U.S. housing market. Regional banks were less affected. They were hit by about 15 billion yen loss.
The six leading lending institutions of Japan are:
- Mitsubishi UFJ Financial Group
- Sumitomo Mitsui Financial Group
- Mizuho Financial Group
- Sumitomo Trust & Banking
- Resona Holdings
- Mitsui Trust Holdings
The above six banks have written-down 115 billion yen ($1.1 billion) as bad debt. All of these, including, the top three banks, which are also known as megabanks, have shown a decline in profit so far this year.
Mitsubishi UFJ Financial Group Inc., Japan's largest bank, has reported a loss of 260 billion yen in subprime mortgage related investments. The exposure of Mizuho, Japan's second-largest bank, is about 800 billion yen in the US mortgage-linked securities as of the end of September. 575 Japanese banks and credit unions held subprime-related products worth $1.2 billion in book value and recognized $985 million in unrealized valuation losses.
Yoshimi Watanabe, Minister of State for Financial Services and Administrative Reform, said at a briefing in Tokyo:
"In response to this market turbulence, we will pay due attention to the status of risk management by financial institutions and the conditions of financial markets from a wide range of standpoints, while cooperating with other authorities in Japan and abroad."
According to Seiji Nakamura, a policy board member of the Bank of Japan, :
"We need to watch closely if the subprime problem will affect the global economy and if there will be a spillover effect on the Japanese economy,"
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