(RTTNews) - Fitch Ratings in a report Wednesday said that the outlook for Japan’s banks remained weak, eroding their ability to withstand any further deterioration in asset quality.

At the same time, the firm said there were no surprises in the interim results of major banks seen in the six months ended September, with regional banks remaining well capitalized but seeing very low returns on capital.

Fitch said given the weak economic outlook and fragmented nature of the Japanese banking industry, it does not see any meaning improvement in the profitability of the banks in the absence of large-scale consolidation. This it considers unlikely because of social and governance constraints on mergers and acquisitions in Japan.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Economy, Japan, Releases.

Subscribe by RSS Subscribe by Email