Provisional Translation

Q.

Last week, Financial Services Agency published the results of its survey on investment property loans. The survey finds out that compared with other banks, the Suruga Bank has a conspicuously large amount of those kinds of loans and its revenue is highly dependent on them. In addition, it reveals that only 25% of banks have conducted the confirmation of borrowers’ original documents on their income and that adequate explanations to their borrowers have not been conducted. What is your view on that?

A.

I think that the fact is there is no other bank as same amount as Suruga Bank from the perspectives of its size of those kinds of loans. I think that borrowers should properly consider whether they can obtain banks’ loans or not, based on the future cash flows of the invested properties. Various types of appropriate advice should be provided as well, because borrowers cannot properly review their future cash flow on their own. In that sense, we need to further investigate these issues and then should take proper responses to them. Anyway I felt that Suruga Bank has been prominent in light of its large amount of investment property loans.