|
|
 |
|
Viewing report
|
|
|
|
Bank Industry Risk Analysis: Japan Nov 08
Standard & Poors, Nov 2008
Abstract
Although global securitization and leveraged markets have been affected by subprime-related turmoil, the outlook on the credit quality of the overall Japanese banking sector is stable due to its limited exposure (see chart 1) and ample liquidity. Low nonperforming loan (NPL) ratios and recovered capitalization due to the accumulation of retained earnings have strengthened the banks' financial profiles. In addition, the private corporate sector has undertaken restructuring efforts, reducing its reliance on credit in the wake of its turbulent experiences in the early 2000s, which is another factor supporting the banks' assets. On the other hand, risk factors include uncertainties surrounding a potential global/domestic economic recession, and slow or limited growth of the domestic banking business, which could negatively affect...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
