Bank of Japan lending plan good for banks: Moody's

HONG KONG (MarketWatch)
The Bank of Japan's plan to fund high-growth enterprises through a 1 trillion yen ($12.5 billion) lending program that draws on its U.S. dollar reserves is good for the creditworthiness of the nation's biggest banks, according to research released Monday by Moody's Investors Service Moody's analysts writing in the rating agency's Weekly Credit Outlook said the scheme, unveiled last week, is "credit positive" for banks, noting that it provides them access to low-cost U.S. dollar funding for the first time
Moody's said it would also foster "a more conducive environment for banks and corporations to pursue overseas growth."
It also singled out Japan's three biggest banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, Inc. as beneficiaries as they ramp up lending to Japanese trading houses and other sectors such as manufacturing
The analysts said they also saw the lending scheme as helping break the conservative culture of Japan's financial sector and "bolster megabanks' willingness to support overseas clients' ventures," Moody's said