Japan bank lobby chief sees no signs of contagion from Credit Suisse woes

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Japan bank lobby chief sees no signs of contagion from Credit Suisse woes
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TOKYO : The head of Japan's banking lobby said on Thursday that there are no signs at the moment of the Japanese financial system being affected by a crisis of confidence in Credit Suisse, as the country's banks are well-capitalised.A plunge in shares of Credit Suisse has renewed fears of a full-blown ban

TOKYO : The head of Japan's banking lobby said on Thursday that there are no signs at the moment of the Japanese financial system being affected by a crisis of confidence in Credit Suisse, as the country's banks are well-capitalised.

"Global banks have beefed up their risk controls over capital and liquidity" since the 2008 global financial crisis, Junichi Hanzawa, chairman of the Japanese Bankers Association, told reporters. He also said systemic risks from the collapse of U.S.-based Silicon Valley Bank have been reduced since the Federal Reserve's decision to backstop all depositors.

Hanzawa assured of the health of the Japanese banking sector, saying that major banks have hedged their positions in foreign bonds and regional banks have already sold substantial amounts of them.

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