MARKETS | Staff Reporter, Japan

Japan's banking regulator surveys lenders on impact of COVID restrictions

The regulator is reportedly seeking to prevent a huge rise in bankruptices of businesses.

Japan’s Financial Services Agency is reportedly surveying regional lenders on how businesses are coping with new restrictions imposed by the government to contain COVID-19, reports Reuters, based on information from four sources with direct knowledge on the matter.

The banking regulator is reportedly seeking to forestall a spike in bankruptcies.

Whilst policymakers stress Japan’s banking system remains stable, the move underscores their concern over the prolonged and widening damage the coronavirus pandemic is inflicting on companies and banks.

“Financial institutions must do their utmost to support corporate funding,” one of the sources said. “Given the need to help regional economies revitalise after the pandemic, we must prevent a huge increase in bankruptcies.”

Japan placed 11 of its 47 prefectures under a state of emergency in January. Containment measures implemented centered on shortening business hours at bars and restaurants, as well as suspending a subsidised-tourism initiative.

Here’s more from Reuters:

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