An interesting article from the Wall Street Journal (not gated) says that on April 30 Japanese financial regulators published a revision to the country’s banking guidelines urging banks to lend more

  • Regulators say they will ‘discuss’ the new guidelines with banks during annual hearings in May and June
  • The revised measures to try to to have banks encourage more borrowing by companies
  • Also to have Japanese banks lend to firms that want money “but have been left too shaky by years of economic weakness for banks to feel comfortable extending them loans”

Well, I hope this doesn’t end in tears …

Oh, no wait, its all good:

the latest guidelines also note that banks should take proper care to analyze credit risk, and they’re not ordering banks to make loans

Japanese Banks Urged to Lend in Fight Against Deflation