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Japan Times
11 hours ago
- Business
- Japan Times
Japanese banks set to ban storage of cash in safe-deposit boxes
Japan's main bank industry group is urging its members to prevent customers from keeping cash and other high-risk items in safe-deposit boxes, following a series of thefts by employees. The Japanese Bankers Association (JBA) has revised its sample agreement to explicitly prohibit the storage of cash in safe-deposit boxes, it said on Thursday. Banks use the document as a model for their contracts with clients who use the service. In recent months, incidents came to light in which workers at major lenders allegedly stole client valuables held in such boxes. That prompted regulators and banks to look more closely at the service, including the potential for it to be used for illicit activities. JBA Chairman Junichi Hanzawa said cash kept in the facilities is at high risk of money laundering and other criminal use. Mitsubishi UFJ Financial Group last year fired an employee who was accused of stealing millions of dollars from the safe-deposit boxes of dozens of customers. Despite the theft, Japan's biggest bank has said it plans to retain the service. Mizuho Financial Group reported a similar incident in February.
The Guardian
3 days ago
- Business
- The Guardian
World's largest banks pledged $869bn to fossil fuel firms in 2024, new report finds
The world's largest banks boosted the amount of financing given to fossil fuel companies last year, committing $869bn to those involved in coal, oil and gas despite the worsening climate crisis and the banks' own, fraying, environmental commitments, a new report has found. The report, compiled by a coalition of eight green groups, shows that while the amount loaned by big banks to fossil fuel firms had been declining in 2021, last year saw an abrupt reversal. Two-thirds of the world's largest 65 banks increased their fossil fuel financing by $162bn from 2023 to 2024. Scientists have been clear that no new fossil fuel project can proceed if disastrous climate impacts are to be avoided, with last year the hottest ever recorded amid a slew of disasters driven by global heating. However, many banks have recently watered down or ditched their own commitments to help reduce planet-heating emissions, amid a changing political dynamic that has seen the US again being led by Donald Trump, who has famously called climate science 'a giant hoax' and 'bullshit'. In February, the US treasury withdrew from a global banking network that aims to increase green finance and reduce climate risk. Four of the five largest fossil fuel financiers last year were American companies, with JPMorgan Chase lending the most at $53.5bn. Bank of America was second, followed by Citigroup. The Japanese bank Mizuho Financial was fourth, with Wells Fargo in fifth. The largest absolute increases in fossil fuel lending last year came from the top American institutions as well as Barclays, the British bank. In the decade since the world's political leaders committed, in the landmark Paris climate agreement, to restrain dangerous global heating, the biggest banks have continued to pour lending towards drilling projects, pipelines and other fossil fuel activity. In total, banks have financed fossil fuels by $7.9tn since the Paris deal. 'By injecting a staggering $869bn into fossil fuel financing in 2024 alone, the world's largest banks fund the climate chaos that fossil fuel companies wreak on people and communities worldwide,' said David Tong, global industry campaign manager at Oil Change International and a co-author of the report. 'Governments must step in and take urgent action to hold financial institutions accountable for their role in the climate crisis.' While most of the world's top financial firms have pledged to abide by the Paris deal and help tackle the climate crisis, many of them have ignored or walked back these promises in the past year while predicting catastrophic global temperature rises. Last year, six US senators said that JPMorgan Chase may have misled investors by backtracking on its climate commitments. Then, in January, shortly before the inauguration of Trump as US president, the six largest American banks – JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs – all withdrew from the net zero banking alliance. The alliance is a United Nations-sponsored initiative to spur banks to align their lending and investment portfolios with the Paris goals. It requires banks to set targets and reduce emissions associated with their investments. 'This year, banks have shown their true colors – many have walked away from climate commitments and doubled down on financing fossil fuel expansion, even as global temperatures break records,' said Lucie Pinson, director and founder at Reclaim Finance, and another report co-author. 'A few European banks may have inched forward, but for most, the lure of dirty money has proven too strong.' The Guardian contacted all of the top lenders to fossil fuels about the report, which is called Banking on Climate Chaos. A Citi spokesperson said that it supports the 'transition to a low-carbon economy and, in 2021, made a commitment to reach net-zero greenhouse gas financed emissions by 2050. 'We work with our clients as they seek to decarbonize their businesses and support clean energy solutions as part of our $1tn sustainable finance goal. Our approach reflects the need to transition while also continuing to meet global needs for energy security, particularly in this time of increasing electricity demand.' A Barclays spokesperson said: 'Barclays provides finance to meet consumer and businesses energy needs while financing the scaling of clean energy. Last year, we mobilised nearly $100bn more Sustainable and Transition Finance than in 2023 and continue to invest £500m in climate tech start-ups by 2027. These are significant interventions to support our clients to transition.' ENDS
Bloomberg
09-05-2025
- Business
- Bloomberg
Japan's Megabanks to Remain Buoyed by BOJ's Long Game to Hike Rates
Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. will detail how much the Bank of Japan's commitment to raise borrowing costs could help profit margins in the midst of uncertainty sparked by US tariffs. Japan's central bank stood pat last week after a cycle of rate hikes since March 2024 and halving its economic growth outlook to 0.5% for this fiscal year. While the BOJ pushed back the timeline for reaching its 2% inflation target citing increased uncertainty from the trade war, Governor Kazuo Ueda emphasized that the adjustment doesn't necessarily imply a delay in future rate hikes.
Globe and Mail
09-04-2025
- Business
- Globe and Mail
From Panic to Positioning: Top ETFs to Watch After Asia's Tariff Shock
April 7, 2025, witnessed a historic selloff across Asian financial markets as escalating trade tensions between the United States and its a trading partners reached a critical point. The reaffirmation of US tariffs and immediate retaliation by major economies like China ignited fears of a global recession, creating a challenging environment for investors. However, amidst the widespread losses, strategic investors are now analyzing the landscape for potential rebound opportunities, with a particular focus on targeted Exchange Traded Funds (ETFs). Japan: Banking and Export Sectors Hit Hard, Recovery Hinges on Policy Shifts Japan's markets bore the brunt of the initial shock, with the Nikkei 225 and Topix indices both collapsing by 7.8%, their largest single-day declines since the early days of the pandemic. Financial institutions like Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial saw losses exceeding 8%, while exporters such as Toyota (-6%) and Advantest (-11%) were heavily impacted by the deteriorating global trade outlook. Potential Rebound ETFs (Canada): For investors anticipating a recovery driven by easing US-Japan trade friction or domestic stimulus measures, ETFs like the CI Japan Equity Index ETF (JAPN / JAPN.B), BMO Japan Index ETF (ZJPN / ZJPN.F), and iShares Japan Fundamental Index ETF (CJP) offer targeted exposure. Explore the full range here. Hong Kong: Tech Sector Leads Sharp Decline, Stimulus Hopes Emerge The Hang Seng Index experienced a dramatic 13.2% plunge – its worst single-day performance since the 2008 financial crisis – as over 3,000 points were erased. Heavily weighted technology stocks, including Tencent, Xiaomi, and Meituan, suffered significant losses due to concerns about prolonged policy standoffs. The downturn extended to consumer and financial sectors, although reports of potential Chinese interest rate cuts and accelerated stimulus offered a glimmer of hope. Hong Kong ETF Landscape (Canada): Currently, no pure-play Hong Kong ETFs are available for Canadian investors. China: Policy Response Key to Reversing Post-Holiday Losses Following a holiday break, China's mainland markets reacted sharply to the global turmoil, with the Shanghai Composite falling 7.3% and the Shenzhen Component dropping 9.7%. Beijing's firm response, imposing a 34% tariff on all US imports, signaled a strong stance and fueled fears of a prolonged economic slowdown. Major companies across all sectors, such as BYD, CATL, and Kweichow Moutai, experienced significant declines. China ETFs for Potential Upside (Canada): Investors are keenly awaiting Beijing's next policy moves. ETFs to watch for potential recovery include the iShares China Index ETF (XCH), BMO MSCI China Selection Equity Index (ZCH), Mackenzie A-Shares CSI 300 Index ETF (QCH), and CI ICBCCS S&P China 500 Index ETF (CHNA.B). India: Global Risk Aversion Impacts Domestic Markets India's Sensex declined by 3% as global risk-off sentiment spread to domestic markets. Metal and industrial stocks, with Tata Steel down nearly 8%, led the losses, and financials and IT stocks were also affected. Despite limited direct trade exposure to the US-China conflict, India's vulnerability to global capital flows and supply chain-related inflation contributed to the downturn. India ETF Options (Canada): Canadian investors seeking exposure to a potential Indian market recovery can consider the BMO MSCI India Selection Equity Index ETF (ZID) or the iShares India index ETF (XID). Taiwan: Enters Bear Market, Stabilization Measures Anticipated Taiwan's Taiex index plummeted nearly 10% on Monday, officially entering bear market territory with total losses exceeding 20% since its July peak. Chipmaking giants TSMC and Foxconn both tumbled around 10%, triggering market circuit breakers. While not directly targeted by the latest tariffs, Taiwan's export-oriented economy is highly susceptible to disruptions in the global supply chain. Taiwan ETF Availability (Canada): Currently, there are no Taiwan ETFs listed in Canada. South Korea: Government Intervention Planned to Counter Market Slide South Korea's KOSPI Index fell by 5.6%, extending its decline to a fourth consecutive session and reaching a 17-month low. Major exporters like Samsung Electronics and Hyundai led the declines as investors reacted to China's retaliatory tariffs and the possibility of further US tariffs on Korean goods. The government swiftly announced plans to activate a 100 trillion-won stabilization fund, and the central bank pledged to provide liquidity if necessary. South Korea ETF Options (Canada): No pure-play South Korea ETFs are currently available for Canadian investors. Final Words The sharp market downturn triggered by the escalating US-China trade war presents a challenging but potentially opportunistic environment. History suggests that proactive policy responses can pave the way for significant market rebounds. For investors with a long-term perspective, carefully selected region-specific ETFs may offer a strategic avenue to capitalize on potential recovery in these currently impacted Asian markets. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
