Author Topic: Ringo Members with accounts at regional banks:think about moving them  (Read 342 times)

Offline William Stonehill

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In Today's front page Japanese Asahi analyzed the bottom line of 102 regional banks whose reporting date is in March. Of them 72 were running in the red, and two banks, Suruga bank and one in Osaka were under criminal investigation.

Not all regional banks are going badly, and some are profitable. However about 2/3 of them do not look good in the various stress tests that the BOJ has applied. With the fall in population, demand for loans has slackened across the board outside large metropolitan areas, and Abe's cheap money policies are putting the future of many regional banks in doubt.

This is a long running problem, and the Japanese government is well aware of it . The BOJ is trying to encourage mergers and buyouts, but the stronger regional banks are not enthusiastic about absorbing smaller , weaker regional banks with all the baggage this entails.

Major city banks appear a much better bet in the long run than regional banks.
Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy

Offline iTmX nee (RevX)

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Thanks Bill, good advice. I've known about this for over a year and have taken steps. Good for everyone to have a heads up.
"I've seen things you people wouldn't believe."

"Life lies in resolve for death"
Flight is the only truly new sensation than men have achieved in modern history.  ~James Dickey
"Goddamn, you play a mean banjo"

Offline William Stonehill

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Thanks Bill, good advice. I've known about this for over a year and have taken steps. Good for everyone to have a heads up.

I doubt the BOJ is going to allow bankruptcies, but there could be problems moving one's savings if it was in the midst of the BOJ trying to revive a bank.

This is rather depressing. It weakens all aspect of the countryside, especially agriculture and fisheries. I think the government worries too much about big industry and not

enough about Japan's agriculture and natural resources.
Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy

Offline iTmX nee (RevX)

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I doubt that failure will be allowed also. I took steps as I liquidated a mortgage 3 years ago with Suruga and still had funds there.

Actually I was very happy with Suruga, true to form they gave me up to 110% loan to buy my previous apartment with minimal interest. Who wouldn't take free money like that!
"I've seen things you people wouldn't believe."

"Life lies in resolve for death"
Flight is the only truly new sensation than men have achieved in modern history.  ~James Dickey
"Goddamn, you play a mean banjo"

Offline William Stonehill

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I doubt that failure will be allowed also. I took steps as I liquidated a mortgage 3 years ago with Suruga and still had funds there.

Actually I was very happy with Suruga, true to form they gave me up to 110% loan to buy my previous apartment with minimal interest. Who wouldn't take free money like that!

Sounds great. I have another friend who still keeps an account there. According to the Japanese Asahi, 45 members of Suruga Bank are being investigated as an "organized group" who gave out loans without proper collateral and, and committed several other irregularities, particularly for granting housing loans meant strictly for buying your own apartment (the Flat 35, I think the loan is called) to developers who used them for investment in rental properties.
Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy

Offline iTmX nee (RevX)

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I doubt that failure will be allowed also. I took steps as I liquidated a mortgage 3 years ago with Suruga and still had funds there.

Actually I was very happy with Suruga, true to form they gave me up to 110% loan to buy my previous apartment with minimal interest. Who wouldn't take free money like that!

Sounds great. I have another friend who still keeps an account there. According to the Japanese Asahi, 45 members of Suruga Bank are being investigated as an "organized group" who gave out loans without proper collateral and, and committed several other irregularities, particularly for granting housing loans meant strictly for buying your own apartment (the Flat 35, I think the loan is called) to developers who used them for investment in rental properties.

How fascinating. I was not given one of those loans but I essentially did what a developer would do and wanted as many loans as I could get as it was as sure and certain money and profit as one could get 13 years ago. I'm not surprised so many developers were keen to get their hands on those funds
"I've seen things you people wouldn't believe."

"Life lies in resolve for death"
Flight is the only truly new sensation than men have achieved in modern history.  ~James Dickey
"Goddamn, you play a mean banjo"

Offline William Stonehill

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I doubt that failure will be allowed also. I took steps as I liquidated a mortgage 3 years ago with Suruga and still had funds there.

Actually I was very happy with Suruga, true to form they gave me up to 110% loan to buy my previous apartment with minimal interest. Who wouldn't take free money like that!

Sounds great. I have another friend who still keeps an account there. According to the Japanese Asahi, 45 members of Suruga Bank are being investigated as an "organized group" who gave out loans without proper collateral and, and committed several other irregularities, particularly for granting housing loans meant strictly for buying your own apartment (the Flat 35, I think the loan is called) to developers who used them for investment in rental properties.

How fascinating. I was not given one of those loans but I essentially did what a developer would do and wanted as many loans as I could get as it was as sure and certain money and profit as one could get 13 years ago. I'm not surprised so many developers were keen to get their hands on those funds

Apparently they were the "go to" bank for these kind of loans. There was also a type of loan I didn't understand, the so-called "shared house loan". They were a major player in this type of loan and, if the BOJ is to be believed, threw away the rules book. The result is they are currently under a half year suspension of making any loans of this nature.

The BOJ also said that the monthly norms were exceptionally high and pressure put on the bank personnel seemed to be extreme. Apparently the BOJ blames the corporate culture for all the infractions that occurred there.
Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy

Offline Mickey Chaplan

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I wonder if you could give us a list of the regional banks in trouble.  (In Japanese would be OK.)

Thanks.


In Today's front page Japanese Asahi analyzed the bottom line of 102 regional banks whose reporting date is in March. Of them 72 were running in the red, and two banks, Suruga bank and one in Osaka were under criminal investigation.

Not all regional banks are going badly, and some are profitable. However about 2/3 of them do not look good in the various stress tests that the BOJ has applied. With the fall in population, demand for loans has slackened across the board outside large metropolitan areas, and Abe's cheap money policies are putting the future of many regional banks in doubt.

This is a long running problem, and the Japanese government is well aware of it . The BOJ is trying to encourage mergers and buyouts, but the stronger regional banks are not enthusiastic about absorbing smaller , weaker regional banks with all the baggage this entails.

Major city banks appear a much better bet in the long run than regional banks.
"Duck is the one proof that there is a God in heaven who loves us."  Habib Fanny, M.D.

Offline William Stonehill

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I wonder if you could give us a list of the regional banks in trouble.  (In Japanese would be OK.)

Thanks.

Is there any one in particular you want to know about? Asahi said they analyzed 102 banks and found 72 to be in bad shape, judging from their bottom line. Unfortunately they didn't attach a list of banks to the article, but they did have a list, region by region of the number of banks that were not doing well.

I wouldn't be too surprised if there is a list in tomorrow's paper or within a few days.


Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy

Offline Mickey Chaplan

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Kawasaki Shinyo Kinko.  TIA,

Mickey
"Duck is the one proof that there is a God in heaven who loves us."  Habib Fanny, M.D.

Offline William Stonehill

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Kawasaki Shinyo Kinko.  TIA,

Mickey

Shinyo Kinko fall under a different authority than banks, and are more closely regulated than them. They are not considered banks. They were not subject of this article. Think of "Savings and Loan" in the USA and you'll have something close to a Shinyo Kinko. As far as I know all the Shinyo Kinko in the Kanto area are in good financial shape, and I haven't seen so much as a whisper about them
Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy

Offline Mickey Chaplan

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Re: Ringo Members with accounts at regional banks:think about moving them
« Reply #11 on: June 06, 2019, 03:55:41 PM »
Thanks, Bill.
"Duck is the one proof that there is a God in heaven who loves us."  Habib Fanny, M.D.

Offline William Stonehill

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Re: Ringo Members with accounts at regional banks:think about moving them
« Reply #12 on: June 06, 2019, 04:20:52 PM »
Thanks, Bill.

Since then, one Shinyo Kinko has come under investigation for capital inadequacy, Seikyo Shinyo Kinko. It's Tokyo based and there are one or two branches up near where I am.
Did you ever walk into a room and forget why you walked in?  I think that is how dogs spend their lives.  ~Sue Murphy