Japan switches to centralised stress tests on 5 banks: Nikkei
[TOKYO] Japan's government and central bank will conduct joint stress tests on MUFG Bank, Sumitomo Mitsui Banking Corp, Mizuho Bank, Sumitomo Mitsui Trust Holdings and Norinchukin Bank, Nikkei reported.
The tests will gauge the banks ability to absorb economic shocks as expansion abroad leaves them more vulnerable to external risks.
Previously, Japan left the details of stress tests to individual banks.
Last week, the Bank of Japan warned the country's banking system is becoming increasingly fragile as financial institutions boost risky lending and investment in an environment of prolonged ultra-low interest rates.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Australian dollar firm as bulls bet on hawkish turn at RBA
ECB rate cut case getting stronger, says chief economist Lane
RBNZ has limited scope to cut cash rate this year: OECD
Crypto.com wants to sponsor more sports after Formula One Miami
Philippine central bank tightens dirty money risk reporting rule
Singapore Savings Bond 10-year average yield hits year-to-date high of 3.33%