Standard & Poor's Corp. said Thursday it is concerned that interest-rate risks assumed by Japanese banks, especially the major banks, are high relative to their capital bases.
"It is becoming increasingly important for banks to monitor and limit their interest-rate risks, as current capital levels are too weak to absorb additional shocks," the U.S. credit-rating agency said in a report.
"Banks need to promote lending that imposes adequate risk premiums on borrowers and to control the inflow of deposits."
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