60% of regional banks lost profits and deficit ended in April-June The impact of the new corona was 4:43 on August 15th
As for regional banks nationwide, the financial results for the three months until June were severe, with about 60% of the banks losing profits and losing money. This is because the spread of new coronavirus infections has increased the cost of preparing for loan losses.
The 78 regional banks in which Mitsubishi UFJ Morgan Stanley Securities is listed, and when the financial results for three months from April to June are summarized, the final profit is reduced at 46 banks. The two banks were in the red.
This accounted for 60% of the total, and the long-term low interest rate reduced the amount of money earned in the main business, and the new coronavirus adversely affected the management of the customer and expanded the cost of preparing for a loan loss. That is the main factor.
According to the company surveyed, "Some banks have increased their costs to prepare for loan losses in anticipation of the prolonged spread of infection. However, many banks do not anticipate the effects of the spread of infection and their bankruptcy These costs may increase as the cost increases.”
Due to the spread of the new coronavirus infection, regional banks are required to support the financing of small and medium-sized enterprises, and the Financial Services Agency provides support such as supporting the financial base by establishing a mechanism to facilitate the injection of public funds into financial institutions. This is an idea I would like to boost.