Japan to inspect 30 banks over loan complaints

Discussion in 'Wall St. News' started by ASusilovic, Mar 30, 2009.

  1. SAN FRANCISCO (MarketWatch) -- Japan's Financial Services Agency plans to examine about 30 financial institutions, including nine major banks, to see if they have improperly denied credit or reduced existing loans to businesses, according to a published report.
    The special inspections, to be conducted from next month through June, will cover the top banks, which have significant outstanding loan balances, Japanese business daily Nikkei said on its Web site in a report dated Tuesday.


    In addition, the FSA plans to examine regional banks and credit associations that have been named frequently in complaints filed by borrowers, the Nikkei report said.
    The agency will check whether the banks have limited lending to certain sectors, such as real estate development, without justifiable reasons, and will also examine if banks have imposed unfair loan conditions on companies that are unable to raise money by issuing commercial paper or corporate bonds, Nikkei said.