Norinchukin sounds warning as higher-for-longer rates inflict losseswww.japantimes.co.jp/business/2024/06/20/companies/japan-norinchukin-bank-losses/
1362 sats \ 8 comments \ @siggy47 24 Jun econ
Norinchukin serves as a central financial institution for Japan’s roughly 3,300 agricultural, forestry and fishery cooperatives. The bank takes deposits from cooperatives, rather than directly from farmers, and manages the money through medium- to long-term investments.
This always scares me:
The bank’s unrealized losses have been reflected in its capital ratio and won’t affect the lender’s soundness, a company spokesperson wrote in an email Wednesday.
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70 sats \ 1 reply \ @Satosora 24 Jun
They need to invest all their money into bitcoin and leave it in long term. Imagine how much that would stabilize btc and the yen!
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0 sats \ 0 replies \ @riberet19 24 Jun
Unfortunately, I doubt very much that they do, Japan's financial institutions seem too archaic.
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65 sats \ 0 replies \ @Coinsreporter 24 Jun
Nochu will remain in the headlines for a long time. It wasn't some small amount that's reported as loss. Also, I believe that japaneese government is not in a situation where it can bail out a bank. If the ship has to sink, Japan won't let others sink with this bank. That's why Japaneese FSA issued a warning to Norinchukinn yesterday.
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54 sats \ 0 replies \ @SatsMate 25 Jun
Terrifying - If I were in Japan right now I would be seeking a life boat. Sending wishes for those being destroyed by currency debasement and poor central banking.
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54 sats \ 3 replies \ @0xbitcoiner 24 Jun
I think it was this bank that announced a few days ago that it would be selling $63 billion of US and European government bonds at a loss, perhaps in an attempt to shore up some cash.
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48 sats \ 2 replies \ @siggy47 OP 24 Jun
That is correct. I'm thinking there are plenty of banks all over the world in the same predicament.
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54 sats \ 1 reply \ @0xbitcoiner 24 Jun
I think $63B won't be anything special and markets can absorb these amounts without much difficulty, but if they start coming one after the other, here we go again.
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48 sats \ 0 replies \ @siggy47 OP 24 Jun
Like you and I talked about last week, I think it's the solvency of the banks that are more concerning than what it does to the bond market. That is until the dominoes really start falling.
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