Article: Batten down the yen. (Japan's banking industry)(Industry Overview)

The banks' decision to resume overseas lending will increase international liquidity and help depress the yen

After a long period of retrenchment, Japanese banks are returning to the arena of international lending, in order to offset the impact of falling loan demand in Japan and to secure better quality assets overseas than they can obtain at home. They are being joined by Japanese life assurance companies, which are also in search of good quality long-term assets.

The re-emergence of Japanese banks on the international scene is not expected to match the aggressive forays they made into the US and Europe during the bubble economy. But so far as borrowers are ...

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