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Japanese Banks Face Rising Interest Rate Risk On Bond Investments Feb 12
Standard & Poors, February 2012
Interest rate risk on Japanese banks' bond investments is rising as the imbalance between interest rate risk and the banks' risk buffers grows. In particular, regional banks (first- and second-tier regional banks) are experiencing a decline in their fundamental profitability--the first buffer against risk--while the increase in interest rate risk outpaces growth in their Tier 1 capital--the last layer of protection. Increasingly, Standard & Poor's Ratings Services has come to consider the recent deterioration in the balance between the banks' interest rate risk and risk buffer as a negative factor for their credit quality, particularly for regional banks. In recent years, Japan's regional and major banks (see note 1) have seen a jump in interest rate risk on their bond...
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.
- Mitsubishi UFJ Trust and Banking Corp.
- 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.