, Japan

Chart of the Week: Two risks haunting Japanese banks' balance sheets

Banks face maturity and higher interest risks.

According to Natixis Research, Japanese banks’ balance sheets are exposed to various risks. Firstly, banks are facing maturity risks. Overseas loans accounted 54% of overall investments, which has shot the loan to deposit ratio to 1.87 in January 2016, well over the critical point of 1.00.

"Other than maturity risk, the interest rate risk is also a sheer size of the overseas security investments of Japanese banks (nearly 24% of overseas assets). The BoJ’s Financial Stability Report in October pointed out that Japanese banks are exposed to higher interest risks."

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!