Japan’s Financial Services Agency is stepping up monitoring of regional banks that lend heavily to the booming real estate sector to make sure risks are under control, according to people familiar with the matter.
The watchdog is conducting interviews with some high-risk regional banks and will consider conducting on-site inspections if necessary, said three people, who wouldn’t be identified as the information isn’t public. They said one of the concerns is a noticeable increase in lending by regional banks on real estate outside of their local areas.
Read More: Japan FSA Said to Boost Watch of Regional Bank Property Lending
