Japan Pushes for Radical Approach to End Bad Debt Woes
Japan's parliament is preparing legislation this week that will empower the Resolution and Collection Corporation (RCC) to purchase a larger portion of the banking system's bad debts.
Japan's parliament is preparing legislation this week that will empower the Resolution and Collection Corporation (RCC) to purchase a larger portion of the banking system's bad debts.
Sanwa Bank (parent of the Japanese factoring company, Sanwa Business credit Co Ltd), Tokai Bank (parent company of the Central Factors Ltd) and Toyo Trust & Banking are set to merge into UFJ Holdings.
Japan's ruling Liberal Democratic party is preparing measures to help small and medium-sized businesses weather the increasingly difficult economic environment, according to the LDP's policy chief.
The Tankan survey published by the Bank of Japan in early October 2000 suggests that the Japanese economy is moving out of recession.
The Japanese banking sector is performing badly compared with most other sectors of the economy. While many other large companies have recently been recording increased earnings, the major banks are still registering falling profits.
The three banks which created the new “superbank” Mizuho in September have reported mixed half-year earnings.
At the end of September 2000 Mizuho Holdings Inc, the holding company for the newly formed Mizuho Financial Group, was launched on the Japanese stock exchange with total assets of Ґ134 trillion .
In July Japanese corporate bankruptcies rose 21% year on year to 1,617. Total debts owed by bankrupt firms tripled to 4, 260bn Yen (Ј26bn).
On Friday, the governor of the Bank of Japan, Masaru Hayami, persuaded the bank’s policy board to raise rates from 0 to 0.25 %. Market analysts do not anticipate any further rise in the rate until next year.
Hiromu Nonaka, the Secretary General of Japan’s ruling Liberal Democratic Party has made an announcement regarding future changes in the rate of interest, saying “It is up to the Bank of Japan to decide.”