Financial Times FT.com

Japan's banks look abroad after years of bad loans

By Michiyo Nakamoto in Tokyo

Published: June 21 2008 03:00 | Last updated: June 21 2008 03:00

Just a few years ago, Japanese banks were so weakened by their non-performing loans that they were forced to seek help from their western rivals and accept public funds to boost their capital.

The extent of their plight was highlighted when Sumitomo Mitsui Financial Group accepted a Y150bn ($1.4bn) capital injection from Goldman Sachs five years ago, on terms that were considered extremely favourable to the US investment bank.

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