Worried about Brexit risk, Japan's financial regulator extends safety net
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
A man walks past a screen displaying the Nikkei average outside a brokerage in Tokyo, Japan, June 24, 2016. REUTERS/Thomas Peter
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
By Takahiko Wada
TOKYO (Reuters) - Japan's financial regulator is extending provisions that help regional financial institutions get public funds in response to risks posed by Britain's vote to leave the European Union, sources said on Tuesday.
The Financial Services Agency, the regulator overseeing banks, securities brokerages and other financial institutions, is extending by five years a programme allowing regional banks and credit unions to borrow from the public purse more easily, people knowledgeable about the matter told Reuters.
The extension comes as authorities remain wary of risks posed by Brexit.
The day after Britain's June 23 vote, Japan's stocks suffered their biggest daily fall in more than five years, while financial markets were roiled and fears raised of a shock to the already fragile global economy.
The Nikkei's<.N225> drop was its steepest since March 2011, when threats of a nuclear catastrophe following a devastating earthquake and tsunami had sent financial markets reeling.
In the wake of the nuclear disaster, the FSA set up a safety net under an Act on Special Measures for Strengthening Financial Functions, which scrapped requirements such as setting profitability goals for regional financial institutions when applying for much-needed public funds.
The deadline for applying for funds under the scheme was originally set at March 2017.
The FSA is also extending by five years, to 2022, a deadline for Banks' Shareholdings Purchase Corporation, which buys shares in Japanese banks to help reduce cross-shareholding among banks, to purchase equities, the sources said.
Government financial assistance to Life Insurance Policyholders Protection Corporation of Japan, which offers support to bankrupt life insurance companies, is also to be extended by five years from March 2017, the sources said.
(Writing by Minami Funakoshi; Editing by Robert Birsel)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stone Energy (SGY) Plans to File Chapter 11 Bankruptcy
- Fed's Williams calls for rate hikes soon, warns of recession otherwise
- Peru's wealthy president mocked for complaining about salary
Create E-mail Alert Related CategoriesReuters
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!