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FSA inspecting some struggling regional banks

Jiji Press TOKYO (Jiji Press) — Japan’s Financial Services Agency has launched on-site inspections of some regional banks with slumping earnings, informed sources said Thursday.

Through the inspections, the FSA plans to urge them to establish sustainable business models at a time when the business environment surrounding regional lenders has been deteriorating as local populations are decreasing and interest rates in the nation remain at rock-bottom levels, according to the sources.

The banks may be urged to take sweeping measures, such as integration with other industry peers, the sources said.

The agency will show its philosophy for bank inspections in its financial administration guidelines, to be announced later this week, the sources said.

The banks subject to the ongoing inspections currently have no problem in their financial standings, including capital levels, according to the sources.Speech

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