Sumitomo Mitsui Financial Group (SMFG) said yesterday that it held AAA-rated subprime mortgage-backed securities (MBS) worth ¥13.5 billion, and had lost ¥200 million due to exposure to US subprime by the end of July. Mitsubishi UFJ said its losses had reached ¥5 billion, on subprime MBS worth ¥280 billion, by the same time. Its shares fell 5.7% on the news. SMFG shares also declined, falling 1% yesterday - the third successive day of decline.
But finance minister Koiji Omi said earlier today that the subprime crisis "will not have a serious influence" on Japanese banks; "with the Japanese, US and European central banks responding quickly (to the subprime troubles), there is an impression that overall we have turned the corner," he said.