Lenders look overseas

摘要

Japanese banks are seeking better returns from high-yield products overseas to counter the impact of negative domestic interest rates on their already-thin returns from lending. The negative interest rate policy adopted by the Bank of Japan in February is lowering borrowing costs and hurting bank profits as loan margins decline. "We need to focus more on earning revenue from fees rather than from margins," said a senior banker at a Japanese mega bank. With the primary loan syndications market experiencing tepid demand and wafer-thin pricing, lenders are looking for better returns from offshore loans, leveraged loans and hybrid and aircraft financings.