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Offshore banking assets up 2.6 pc in June.

TOKYO, Aug. 9 Kyodo

The balance of offshore banking assets for the Japan Offshore Market rose 2.6% in June from a month earlier to 62.29 trillion yen, the first upturn in seven months, the Finance Ministry said Monday.

Assets denominated in foreign currencies grew 1.2% to 24.95 trillion yen, the ministry said. Yen assets advanced 3.5 % to 37.33 trillion yen.

"The shrinkage of the offshore market has come to a halt statistically, though Japanese banks' overall operations overseas should also be taken into account," a ministry official said.

In the Japan Offshore Market, where regulations are looser than ordinary financial markets in the country, Japanese banks do business with nonresidents through specially created accounts.

The balance of offshore banking assets for the market has recently been about 36% smaller than its peak in December 1997. That is because of a weakening of Japanese banks stemming from problems with their balance sheets.

Of the total assets, deposits and call money came to 19.86 trillion yen in June, the ministry said. Their 12% jump made a significant contribution to the latest turnaround in the balance.

Securities, loans and funds in interoffice accounts were all down to 339.4 billion yen, 2.04 trillion yen and 40.05 trillion yen, respectively, it said.
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Publication:Japan Weekly Monitor
Date:Aug 16, 1999
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