Stagnant local demand, low interest rates and a massive domestic quantitative easing (QE) programme are forcing Japanese banks to significantly expand their lending operations abroad, according to data from the Bank of Japan (BoJ) and banks' financial statements.
The recent $3bn purchase of RBS’s American loan portfolio by Mizuho and the pending $244m acquisition of the UBS fund unit by Mitsubishi UFJ are indicators of this trend – one that is aided by the global retrenchment of banks that followed the financial crisis. While European banks have pulled back from Asia and US, lenders have focused on shoring up their capital bases, and the Japanese, who largely avoided the turmoil, have found themselves facing swelling deposits and weakening domestic appetite for loans.
