Japan to revamp bank monitoring to revive regional economy: sources
- Wall Street dips as Verizon drags; AmEx curbs losses
- AT&T (T) Said to Discuss Idea of Takeover in Time Warner (TWX) Meetings
- UPDATE: Qualcomm (QCOM), NXP Semiconductors (NXPI) Deal Could be Announced Next Week - Bloomberg
- Tesla (TSLA) Announces Self-Driving Hardware for All Vehicles in Production; Includes Model 3
- Walgreens Boots Alliance (WBA) Tops Q4 EPS by 8c; Guides FY17 EPS
A man runs past the Bank of Japan (BOJ) building in Tokyo, Japan, July 29, 2016. REUTERS/Kim Kyung-Hoon/File Photo
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
TOKYO (Reuters) - Japan's government plans to overhaul its monitoring system targeting regional banks in efforts to raise their profitability and facilitate lending to local businesses, sources with direct knowledge of the matter told Reuters on Monday.
The Financial Services Agency hopes to improve monitoring of regional banks to determine if they provide enough lending and have sustainable business models as lenders are expected to play a key role in supporting local businesses.
FSA chief Nobuchika Mori underscored last week the need for the financial watchdog to revamp the monitoring and supervising scheme given rising challenges in the financial industry facing a dwindling population and rock-bottom interest rates.
FSA officials could not be immediately reached for comments.
Under the plan, the FSA would divide regional banks into two groups in bringing them under a new monitoring scheme, the sources said on condition of anonymity as it has not been finalised yet.
One group is targeting major regional banks with the aim of enhancing their intermediary functions so as to boost lending, the sources said.
The other is focused on smaller lenders, to help raise their profitability with sustainable business models so they revitalise niche markets and unique businesses, they said.
The groupings should not be related to the financial health of the lenders or any ongoing move to realign regional banks, they added.
(Reporting by Sumio Ito and Takahiko Wada; Writing by Tetsushi Kajimoto; Editing by Jacqueline Wong)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Euro weakens against dollar before ECB meeting
- Exclusive: Digital media company Everyday Health explores sale - sources
- Israeli troops kill Palestinian suspected of throwing rocks at them: army
Create E-mail Alert Related CategoriesEconomic Data, Reuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!