Banks’ securities investment portfolios contract by over 9%

Banks’ securities investment portfolios were worth 9.4% less at 31 March 2017 than a year earlier, according to figures from the Japanese Bankers Association. The drop follows a 6% decline in the 2015/16 year (see archive 2016/1o/10 Japanese banks’ securities portfolios shrank over 6% last year).

Holdings of government bonds fell during the term by 18.4% to reach 79,978.2 billion yen while investment in local government debt rose 9.6%.

Stocks rose only 3.8% — less than a third of the rise in the overall market during the year — to reach 24,767.3bn yen while falling 0.5% at city banks. At regional banks  they rose 11% to account for 8.66% of portfolios, up from 7.43% formerly. Text continues below table

The numbers come amid reports that the Financial Services Agency has been talking to the regional institutions about the risks they are taking on as they try to replace earnings from lending — for which there is little demand — with gains from investments, notably investment trusts.

© 2017 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to and a link provided to the original text on that site.

This blog would not exist without the help and humour of Diane Stormont, 1959-2012


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