BOJ's Suzuki says Japan banks could see spike in COVID-related credit costs

Credit: REUTERS/ISSEI KATO

Japanese financial institutions may see credit costs balloon to levels hit during the global financial crisis if a second and third wave of coronavirus infections hammer the economy, Bank of Japan board member Hitoshi Suzuki said on Thursday.

TOKYO, Aug 27 (Reuters) - Japanese financial institutions may see credit costs balloon to levels hit during the global financial crisis if a second and third wave of coronavirus infections hammer the economy, Bank of Japan board member Hitoshi Suzuki said on Thursday.

"As financial institutions actively support companies suffering from funding strains caused by the pandemic, part of the loans could go sour and saddle them with credit costs," Suzuki said in a speech to business leaders in Asahikawa, northern Japan.

(Reporting by Leika Kihara Editing by Chang-Ran Kim)

((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net))

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