ID :
60088
Mon, 05/11/2009 - 21:02
Auther :
Shortlink :
https://oananews.org//node/60088
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FSA mulling slapping business improvement orders on 6 banks
+
TOKYO, May 11 Kyodo -
The Financial Services Agency is mulling issuing business improvement orders to
six Japanese banks that received public funds due to their poor earnings
forecasts, sources close to the matter said Monday.
The six banks are Chuo Mitsui Trust Holdings Inc., Shinsei Bank, Aozora Bank,
Chiba Kogyo Bank, Higashi Nippon Bank and Gifu Bank, the sources said. Shinsei
and Aozora are currently engaged in management integration talks.
The banks are unlikely to achieve their earnings targets by large margins for
the business year that ended in March and could delay returning public funds as
a result, the sources said.
Japan's financial watchdog orders banks in receipt of public funds to improve
their business practices when their earnings figures such as net profit fall
short of targets stated in their rehabilitation plans by 30 percent or more.
If a bank fails to achieve its earnings targets after receiving an
administrative order, the FSA reissues the order and can urge the bank to
change its top management.
The FSA is expected to hear from the six banks on how they plan to respond to
their deteriorating earnings before deciding on the imposition of business
improvement orders as many of the banks have been hard hit by extraordinary
factors, such as a temporary surge in appraisal losses on equity investments
amid the global financial crisis.
The FSA may decide not to issue administrative orders depending on the banks'
responses, the sources said.
All of the six banks have revised downward their earnings forecasts for fiscal
2008 and are expected to fall into the red due to an increase in losses linked
to equity investments and disposal of bad loans.
Last week, Shinsei Bank nearly tripled its group net loss projection for fiscal
2008 to 143 billion yen from its earlier projection. Chuo Mitsui Trust
Holdings, a major Japanese trust banking group, is also expecting 92 billion
yen in group net loss, against its earlier estimate of 30 billion yen in net
profit.
==Kyodo
2009-05-11 22:30:52
TOKYO, May 11 Kyodo -
The Financial Services Agency is mulling issuing business improvement orders to
six Japanese banks that received public funds due to their poor earnings
forecasts, sources close to the matter said Monday.
The six banks are Chuo Mitsui Trust Holdings Inc., Shinsei Bank, Aozora Bank,
Chiba Kogyo Bank, Higashi Nippon Bank and Gifu Bank, the sources said. Shinsei
and Aozora are currently engaged in management integration talks.
The banks are unlikely to achieve their earnings targets by large margins for
the business year that ended in March and could delay returning public funds as
a result, the sources said.
Japan's financial watchdog orders banks in receipt of public funds to improve
their business practices when their earnings figures such as net profit fall
short of targets stated in their rehabilitation plans by 30 percent or more.
If a bank fails to achieve its earnings targets after receiving an
administrative order, the FSA reissues the order and can urge the bank to
change its top management.
The FSA is expected to hear from the six banks on how they plan to respond to
their deteriorating earnings before deciding on the imposition of business
improvement orders as many of the banks have been hard hit by extraordinary
factors, such as a temporary surge in appraisal losses on equity investments
amid the global financial crisis.
The FSA may decide not to issue administrative orders depending on the banks'
responses, the sources said.
All of the six banks have revised downward their earnings forecasts for fiscal
2008 and are expected to fall into the red due to an increase in losses linked
to equity investments and disposal of bad loans.
Last week, Shinsei Bank nearly tripled its group net loss projection for fiscal
2008 to 143 billion yen from its earlier projection. Chuo Mitsui Trust
Holdings, a major Japanese trust banking group, is also expecting 92 billion
yen in group net loss, against its earlier estimate of 30 billion yen in net
profit.
==Kyodo
2009-05-11 22:30:52
