Credit Suisse Reinforces Japan's Offshore Anxiety

Summary

• The crisis at Credit Suisse has traders wondering who's next. Japanese lenders, with their staid depositor bases, look like unlikely targets for bank runs.
• One worry is that the Japanese will liquidate their massive overseas portfolios in concert, should domestic sovereign bond prices suddenly fall.
• Japan’s top government spokesperson said on March 20 that the domestic banking system was stable.

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By Breakingviews

The crisis at Credit Suisse (CS) has traders wondering who's next. Japanese lenders, with their staid depositor bases, look like unlikely targets for bank runs. Yet, their collective overseas bond portfolio is in focus. So it should be.