Japan Megabanks Show Asia Depreciation Concern After Loan Binge
- Top three banks lent 22.7 trillion yen to Asia at March-end
- Region comprised 9.3% of the assets of Mitsubishi UFJ
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Japanese banks may be starting to regret their biggest increase in overseas lending in 30 years as Asian economies slump and currencies tumble.
Mitsubishi UFJ Financial Group Inc.’s assets in Asia excluding Japan made up 9.3 percent of the total as of March 31, the most in at least 10 years, according to its annual report filed in July. The nation’s biggest lender said depreciation could weaken the finances of borrowers. Overdue loans from the region at Sumitomo Mitsui Financial Group Inc. rose 77 percent while those at Mizuho Financial Group Inc. increased 24 percent in the year ended March 31.