Massive assets soften blow
Wednesday 27 September 1995
Based in Osaka, it ranks 41st in the world league table of big banks. Group assets totalling a massive pounds 125bn have allowed the bank to absorb the pounds 700m loss brought about by the unauthorised bond dealings of Toshihide Iguchi in New York, a luxury that the far smaller Barings merchant bank was unable to afford when confronted with the ruinous derivatives speculation of Nick Leeson.
Daiwa is what the Japanese refer to as a "city bank", which means it is essentially a retail, lending bank in a country which, like the US, has erected a legal wall separating commercial banks from those engaging in investment banking. Daiwa Bank has nothing to do with Daiwa Securities, which is one of the world's leading securities dealing houses.
Exceptionally, however, Daiwa Bank has become something of a hybrid, in that two years ago it acquired a troubled securities business. While announcing the bond trading scandal yesterday, Daiwa sought to reassure financial markets by raising its group pre-tax forecast for the year to March 1995 to pounds 800m from pounds 180m.
In common with all Japanese banks, Daiwa has been badly hit by massive bad debts in the property sector, which collapsed after a furious boom of indiscriminate lending. The bank has only been able to maintain its good profits forecast by putting off provisions for bad debt losses. Four Japanese credit unions and a major regional bank have had to be rescued by the authorities because of their bad debts, amidst nervousness in the financial markets.
filmFilm producers sue Warner Bros for $75m over Hobbit films
sportNapoli 2 Arsenal 0: Gunners must now face either Real Madrid, PSG, Bayern Munich, Atletico Madrid or Barcelona in knock-out stages
Swedish stars ask fans for £195 pledges on crowd-funding website
voicesJust when you thought you could find a man, get married, and have a baby by the age of 35... it turns out you’re too late, says Grace Dent
musicAs Mariah Carey and Noddy Holder rake in the royalties from their classics, why there hasn't been a decent festive hit for 20 years?
theatreAuthor Daniel Rosenthal recalls the mishaps that almost brought the curtain down on the likes of John Gielgud and Diana Rigg
lifeAs the Royal Mail plans to phase out deliveries on two wheels, it's no wonder posties are in a spin
musicThe 21-year-old beat Ella Eyre and Chlöe Howl to win the honour
lifeFull of the joys and want to help your fellow man? December isn't the time to do it
techLuke Blackall reports on precision engineered prams and babygros that monitor your child 24-7
Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
David Cameron explains selfie with Obama and Helle Thorning-Schmidt at Mandela Memorial
French café starts charging extra to rude customers
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Australia incest case: Filthy and severely deformed children found in remote farming community after generations of inbreeding
- 1 Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
- 2 John McAfee's $100 'anti-NSA' device: 'this is coming and cannot be stopped'
- 3 French café starts charging extra to rude customers
- 4 Is Facebook making us forget? Study shows that taking pictures ruin memories
- 5 Australia incest case: Filthy and severely deformed children found in remote farming community after generations of inbreeding
£77099.84 - £96375.26 per annum + Bonus + Benefits : Harrington Starr: My clie...
£45000 - £60000 per annum + Bonus and Package: Harrington Starr: Trading appli...
£35000 - £38000 per annum + Benefits: Harrington Starr: C# .NET Developer (Win...
£60000 - £70000 per annum + Benefits: Harrington Starr: Senior QA Engineer Tes...