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From Komfie Manalo, Opalesque Asia:
Japan’s Financial Services Agency released a report which showed that Japanese deposit-taking institutions posted losses from exposures to subprime-related products and securitized products.
The institutions, led by major banks with a combined Tier 1 capital of 23.305tln yen (US$257.53bn), have at least 397bn yen (US$4.27bn) exposure to subprime-related products or asset-backed securities (ABSs) backed by subprime loans or collateralized debt obligations (CDOs) and other financial products, as or June 2009.
However, these major banks reported a combined losses of 916bn yen (US$10.11bn) from April 2007 to June 2009 from this exposure.
The group has 17bn yen exposure to subprime related businesses, but posted 24bn yen losses from exposure as of June 2009.
In total, major banks, regional banks and Cooperative Financial Institutions or CFIs, lost at least 1tln yen (US$11.052bn) from their exposure to subprime related products as of June 2009.
The FSA released another report which summarizes exposures of Japanese deposit-taking institutions to securitized products based on the leading practices.
The second report said the major banks have 75bn yen exposures to collateralized debt obligations (CDOs) as of end of June this year and losses amounting to 615bn yen (US$6.79bn) in CDOs. The gr...................... To view our full article Click here
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