Takefuji delivered its profit warning today, slipping it into the market just before a string of Golden Week national holidays. The company, which will report full-year results for fiscal 2006 next Tuesday, said that its net loss for the year likely would be 481billion yen (£2 billion) — far worse than the Y333 billion loss forecast at a similar profit warning issued in January.
With dozens of small, legitimate non-bank lenders expected to collapse over the next six months and the Government tightening usury laws for mainstream consumer finance firms, analysts are predicting soaring growth in illegal backstreet lending.
One senior Shinsei Bank executive said that the consumer loans crisis “represents the biggest single opportunity for Japanese organised crime to fill its coffers since the property bubble of the Eighties”.
TAKAF 1-yr chart