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No Lack Of Options For Japanese Banks To Lift Lending Margins, But Challenges Abound Sep 10
Standard & Poors, September 2010
Even before the global financial crisis pushed up credit costs, Japanese banks have long wrestled with low profitability in their lending business. Compared with their counterparts in the U.S. and Germany, Japanese banks have the lowest net interest margins (NIMs), minus credit costs. This is mainly because Japanese banks have smaller portfolios of consumer loans (including mortgage loans), which carry larger spreads, than corporate loans with thin spreads. Yet, their hands are not tied when it comes to improving profitability. Several options are available to Japanese banks, such as promoting housing and consumer loans and increasing overseas loans with larger spreads. However, Standard & Poor's Ratings Services believes that there are pitfalls, and Japanese banks may remain challenged to improve...
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.
- Development Bank of Japan Inc.
- Shinsei Bank Ltd.
- UFJ Bank Ltd.
- Tokai Bank Ltd.
- Norinchukin Bank
- Aozora Bank Ltd.
- Japan Bank for International Cooperation (Old)
- Sumitomo Mitsui Trust Bank Ltd.
- Hokuriku Bank Ltd.
- Shizuoka Bank Ltd.
- Chiba Bank Ltd.
- Ashikaga Bank Ltd.
- Sakura Bank Ltd.
- Joyo Bank Ltd. (Unsolicited Ratings)
- Asahi Bank Ltd.
- Gunma Bank Ltd.
- Bank of Tokyo-Mitsubishi Ltd.
- Toho Bank Ltd.
- Iyo Bank Ltd.
- Bank of Yokohama Ltd. (Unsolicited Ratings)
- Hachijuni Bank Ltd.
- Nanto Bank Ltd.
- Daishi Bank Ltd. (Unsolicited Ratings)
- Bank of Kyoto Ltd.
- Hyakugo Bank Ltd.
- Cititrust & Banking Corp.
- DB Trust Co. Ltd.
- NCT Trust and Banking Corp.
- Master Trust Bank of Japan Ltd.
- Hiroshima Bank Ltd. (Unsolicited Ratings)
- Bank of Fukuoka Ltd.
- Tokyo Tomin Bank Ltd.
- 77 Bank Ltd.
- Higo Bank Ltd.
- Hokkoku Bank Ltd.
- Kagoshima Bank Ltd.
- Shiga Bank Ltd.
- Yamaguchi Bank Ltd.
- Keiyo Bank Ltd.
- UFJ Trust Bank Ltd.
- Shinkin Central Bank
- Chuo Mitsui Trust & Banking Co. Ltd.
- Bank of Iwate Ltd.
- Mizuho Trust & Banking Co. Ltd.
- Sumitomo Mitsui Banking Corp.
- Sony Bank Inc.
- Seven Bank Ltd.
- ORIX Bank Corp.
- Mizuho Bank Ltd.
- Mizuho Corporate Bank Ltd.
- Mitsubishi UFJ Financial Group Inc.
- Resona Bank Ltd.
- Mizuho Financial Group Inc.
- Sumitomo Mitsui Financial Group Inc.
- ShinGinko Tokyo Ltd.
- Bank of Tokyo-Mitsubishi UFJ Ltd.
- Citibank N.A. (Japan Branches)
- Citibank Japan Ltd.