TOKYO (Standard&Poor's) June 12, 2008--Major Japanese banks have continued to increase their overseas lending balances since fiscal 2004 (ended March 31, 2005), and the ratio of overseas lending to total lending is growing, Standard&Poor's Ratings Services said in Japanese-language report published today. However, the banks saw a slight increase in credit costs in fiscal 2007, amid the financial turmoil triggered by the U.S. subprime loan issue. As domestic lending continues to grow at a sluggish pace, each bank is increasing its overseas business. A key issue for each bank is to implement a clear strategy that will enhance its strength, develop a stronger risk management system, and secure personnel. Japan's mega-banks are Mitsubishi UFJ Financial Group
