Japan to become more like Cyprus – bail-ins for Japan banks

Author: Eamonn Sheridan | Category: News

The Financial Services Agency will take a new approach to dealing with troubled financial institutions, forcing losses on investors if necessary to reduce the taxpayer burden.

Japan To Adopt ‘Bail-Ins’ For Failed Banks (Nikkei, gated)

Non-gated info here: Japan to adopt ‘bail-ins,’ force bank losses on investors if needed, Nikkei says

Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in,” according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.

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