Japan's FSA commissioner, Toshihide Endo, comments in an interview
- Says regional banks should not blame BOJ's monetary policies for their woes
- They should explore how to survive under current situation
- And not just sit and wait for the BOJ to change its monetary policy
- They need to "get their act together"
- Some regional banks are not considering seriously how to build a sustainable business model despite gloomy prospects for the industry
One thing that often affects the BOJ's policies is also consideration for bank profits. With an extremely low interest rate environment, regional banks have suffered as returns from their lending activities continue to dwindle. And with fintech being very well received by Japanese authorities, it's going to eat into banks' bottom line even more.
It looks like tough times are ahead for Japanese banks. And the FSA doesn't look like they're keen to offer a helping hand.
