The Financial Express

February 07, 2002

Japan banks in crisis after stock market crash

Tokyo, February 6: Calls for public funds for Japan's top banks are mounting
as Tokyo's stock market plunges, with the losses in banks' share portfolios
eroding their capital to levels where critical capital adequacy ratios risk
being breached.
Most top banks expect to post losses for the current business year ending
March 31 and their efforts to expand revenue paths and boost profitability
are unlikely to show quick results because of their painfully slow progress
in restructuring. Top banks have already put aside a combined 6.4 trillion
yen ($47.80 billion) this business year in loan-loss charges against shaky
borrowers. These costs can only grow as the economy deteriorates and stock
losses will add to the burden. - Reuters

� 2002: Indian Express Newspapers (Bombay) Ltd. All rights reserved
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