For decades, banks in Japan have clung to a network of cross-shareholdings that date to the nation’s industrial emergence from World War II, helping companies expand globally and ride out periods of economic hardship.
Now, expectations are growing for a more rapid sell-down of the equity stakes. The nation’s top financial regulator has pressured property-and-casualty insurers to cut their holdings and the banks will probably follow in this direction.
“This year will see a second wave of unwinding of cross-shareholders - which will likely include insurance companies and banks too,”