Japanese banks under IMF scrutiny

5 years ago by in Business

Japanese banks are currently under close scrutiny by the International Monetary Fund (IMF), which is performing so-called “stress tests” to verify their ability to resist the sluggish global economic growth and the European sovereign debt crisis. The results of the tests could be released as early as this summer.

The IMF is expected to conduct an on-site survey in Japan next March, according to the Nikkei newspaper.

Even if the Japanese banks are thought to have little direct exposure to the European crisis, they may be forced to increase their capital buffers following the IMF test results release.

The Japanese banks have already been forced to cut thousands of jobs as a result of domestic economic difficulties.

The IMF decided in 2010 to conduct complex analysis on the financial sectors of 25 “systemically important” countries every five years, in order to help prevent a future global crisis.