Japan

The Bank of Japan has extended its asset-purchasing scheme by US$128 billion to boost the moribund economy.

Tadahiro Matsushita, Minister of the Financial Services Agency, the banking industry regulator, committed suicide Monday.

Japan’s largest bank could invest billions of dollars to fund Australian home loans through other means.

Mizuho Corporate Bank and Akbank signed a cooperation agreement to finance mergers and acquisitions between both countries.

Nomura Holdings intends to save up to US$1 billion in a worldwide cost cutting program centered on its wholesale division.

Mizuho Bank Ltd, the banking unit of Mizuho Financial Group, is set to finance more mergers and acquisitions abroad with a US$2 billion credit line from the government.

Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group, Inc. and Sumitomo Mitsui Financial Group Inc. have loaned a record US$515 million overseas.

Japan's biggest bank has suspended another London-based trader over the widening LIBOR interest-rate rigging scandal. Bank of Tokyo-Mitsubishi UFJ Ltd. said one trader has been told to be on stand-by at home but withheld further comment. The trader is a non-Japanese who worked for the bank in London. The bank had earlier suspended two other London-based traders because of their suspected involvement in the LIBOR rate-rigging scandal while working for Dutch lender Rabobank. The scandal saw Britain's Barclays PLC fined £290 million after admitting that it attempted to manipulate LIBOR and EURIBOR rates between 2005 and 2009. LIBOR, or the London Interbank Offered Rate, is a flagship instrument used as an interest rate benchmark throughout the world, while EURIBOR is the Eurozone equivalent.

Mizuho Financial Group Inc has increased loans overseas by 25% from a year earlier in March and now looks to expand lending by another 30%.

Nomura Holdings CEO Kenichi Watanabe resigned yesterday in an insider trading scandal that has again smeared the reputation of Japan's biggest investment bank.

Fitch Ratings Ltd downgrades three of Japan’s largest banks following a cut in Japan’s sovereign debt rating. Fitch said the downgrade was over concerns about Japan’s ability to support its financial sector. It lowered its rating by one notch to ‘A-’ from ‘A’ (the seventh highest on a 22-rating scale) for Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group. The rating reduction, however, comes two month after the trio reported huge increases in annual profits, with Mitsubishi UFJ alone reporting a 68% growth on trading. Together, the three banks have a combined net profit of US$26 billion. The total net profit of all three banks is the largest since the global financial crisis began in 2008. Despite these huge profits, Fitch reduced the three banks’ credit ratings since the improvements weren’t coming from their core business of lending, but from the sales of Japanese Government Bonds that banks rely on since demand for loans remain low. Fitch said it also lowered its rating for Sumitomo Mitsui Trust Bank to the same level as the major banks. “The downgrade...reflects the government’s weakened financial ability to support the banking system as indicated by the downgrade of (Japan’s sovereign rating),” Fitch said in a statement. In May, the agency cut Japan’s credit rating, citing its leisurely efforts at shrinking its mammoth public debt. It downgraded Japan’s long-term rating to “A+” from “AA”, with a negative outlook, noting growing risks for Japan’s sovereign credit profile as a result of high and rising public debt ratios. Fitch previously warned that by the end of this year, Japan’s public debt would stand at 239% of GDP. Fitch last week, however, kept its outlook on the Japanese lenders at stable, which seems to indicate it has no immediate plans to cut their ratings again. The downgrade on Japan’s sovereign rating followed similar downgrades by Moody’s and Standard & Poor’s in the past 18 months.

Japan’s largest bank will invest US$300 million to establish a subsidiary in Turkey.

Japanese banks are targeting South Korean conglomerates seeking funds for global expansion.

An embarrassing insider trading scandal compels the government to take a tougher stand against this illegal but commonplace practice in Japan.

Japan’s third-biggest bank by market value continues to gobble up foreign assets.

Sumitomo Mitsui Trust Holdings, Inc looks to invest a massive amount on a European buying spree.