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8411 - Mizuho Financial Inc News Story

¥132.9 1.0  0.8%

Last Trade - 07/08/20

Large Cap
Market Cap £24.29bn
Enterprise Value £30.12bn
Revenue £19.85bn
Position in Universe 31st / 3862

UPDATE 1-Japan's banks face no immediate threat despite rising credit costs - lobby head

Thu 18th June, 2020 8:22am
(Adds quotes and background)
    TOKYO, June 18 (Reuters) - Japanese banks are financially
robust and there is no immediate threat to the sector and the
financial system despite rising credit-related costs, the head
of an industry lobby group said on Thursday.
    The remark came after Japan's three biggest banks -
Mitsubishi UFJ Financial Group Inc (MUFG)  8306.T , Sumitomo
Mitsui Financial Group Inc  8316.T  and Mizuho Financial Group
Inc  8411.T  - estimated a collective 1.1 trillion yen ($10.3
billion) of credit-related costs for this fiscal year amid the
coronavirus pandemic.  urn:newsml:reuters.com:*:nL4N2CX1N4
    "Japanese banks are in reasonable financial health, compared
to the time of the global financial crisis, and no financial
instability is occurring at this moment," Kanetsugu Mike told
reporters at a regular press briefing.
    "Rising credit-related costs don't mean the banking sector
and the financial system will immediately face a serious
impact," said Mike, who is also the head of MUFG's banking unit.
    As the coronavirus outbreak has eroded company profits, the
government has urged financial institutions to help finance
virus-hit firms. The Bank of Japan earlier this week also
increased the nominal size of its lending packages for
cash-strapped firms to $1 trillion from about $700 billion
announced last month.  urn:newsml:reuters.com:*:nL4N2DT0N6
    Outstanding loans by Japanese banks as at end-May were 531
trillion yen ($4.97 trillion), up 6.4% year on a year earlier,
the sharpest rise since 1999, Mike said. 
    In an interview with Reuters this month, Mizuho's chief
executive Tatsufumi Sakai said coronavirus-related loan requests
to the bank had reached 17 trillion yen since the outbreak
began, with 10 trillion yen in loans and credit lines having
been agreed.  urn:newsml:reuters.com:*:nL4N2DK025

($1 = 106.8800 yen)

 (Reporting by Takashi Umekawa; Editing by Chris Gallagher and
Richard Pullin)
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