Skip to main content

Cross-border lending exposes Japanese banks to new risks

Japan has regained its position as the world's largest international lender. This partly reflects the relative stability of the country's banking sector in recent years. But it is also the result of a lack of lending opportunities at home. As the recent sharp depreciation of many emerging-market currencies highlights, this strategy exposes banks to significant exchange rate risks.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.