Japan to abandon COVID-era banking guidelines for borrower relief

TOKYO (AP) — Japan’s monetary regulator will ask lenders next year to put more emphasis on reversing troubled borrowers, replacing the cash flow aid provided during the COVID-19 pandemic, Nikkei has learned.

Under revised guidance expected to be released next spring through the Financial Services Agency, borrowers deserve to be steered toward decisive restructuring rather than allowing debt disruptions to worsen through deferral of payments.

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