Fitch: Structural challenges pressure Japanese major banks' profitability
|In its latest review on the Japanese banking sector, the US-based Fitch Ratings, the Japanese major banks' profitability will remain under pressure due to structural challenges despite efforts to improve efficiency, as cited by Reuters.
Key Findings:
“Persistently low interest rates in Japan, a declining and aging population, changes in consumer expectations from financial services providers combined with rising uncertainties in the global economy are major headwinds.
Key to the banks' medium-term outcomes is their capital strategy to build loss-absorption buffers commensurate with their risk appetite, and management's ability to present and execute a sustainable strategy.
The major banks will maintain sound asset quality, although credit costs are likely to rise as the challenges continue to build. Stable liquidity and funding positions are supported by a sound franchise in the domestic market.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.