The Financial Services Agency plans to make unprecedented inspections of Japan's top banks to avert a loan drought that would boost bankruptcies.
Lenders the FSA will inspect include Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. The regulator said Tuesday it will examine their records to ensure they provide credit and don't force borrowers to repay loans early as the recession deepens.
"The new measures include some drastic steps that leave the impression the agency is pulling out all the stops," said Shinichi Ina, an analyst at Credit Suisse Group AG in a report. "It underlines the government's commitment to avoid bankruptcies."