Considering deregulation of investment to increase banks' revenue sources Financial Services Agency June 8, 5:55
With low interest rates prolonging, it is becoming difficult for banks to make profits by lending their main business. The FSA is considering deregulation to make it easier to invest in fintech companies in order to increase the revenue sources of banks.
In addition to prolonged low interest rates and competition from IT companies, the new coronavirus has also increased the cost of preparing loan losses for companies, making the profit environment even more severe.
For this reason, the FSA is considering deregulation that allows banks to make profits outside their core business, such as lending and operation.
Banks are currently regulated to only allow up to 5% in companies and 15% in holding companies.
The FSA will diversify banks' revenue sources by allowing definitive delegation to invest in fintech companies and local trading companies that sell local specialty products, etc., without restriction, if certain conditions are met. The aim is to
In addition, we will also consider allowing unlimited investment in companies involved in fields such as “regional revitalization”, “education”, and “welfare”.
Considering that the FSA has the opinion that, while the management of local companies is becoming tough due to the influence of the new coronavirus, it is necessary not only to support the cash flow by lending but also to provide capital support such as investment, it will be considered. I am deciding.