BOJ signals concern over surge in Japanese banks' overseas lending

Tokyo

JAPANESE banks have been advancing aggressively in Asia and beyond in the wake of the 2008 global financial crisis, swelling their loan books and making acquisitions, while European and US banks have retreated. This strategy is worrying the Bank of Japan (BOJ), which sees possible funding risks ahead for banks.

"This is a major concern from our perspective," a senior BOJ official said. "We think the banks' (overseas) funding structure needs attention and we may have to enhance our monitoring," he added.