Derivatives exposures blow-up weighs on Japan banks’ leverage measure

- By Lorenzo Migliorato
- 16 May 2022

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Derivatives exposures at some of Japan’s top dealers exploded during the first quarter, dragging their leverage ratios to multi-year lows.

Mizuho Financial Group saw the derivatives component of leverage exposure balloon 41% to ¥16.2 trillion ($123.8 billion) over the three months to March 31, mostly as a result of higher regulatory add-ons to capture potential future exposure, which are calculated as a percentage of notional principal.

!function(e,i,n,s){var t="InfogramEmbeds",d=e

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact info@risk.net to find out more.

You are currently unable to copy this content. Please contact info@risk.net to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@risk.net

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@risk.net