Japanese banks in the United States are paying a heavy price for their recent deep involvement in real estate lending, according to the Federal Reserve Bank of San Francisco.

The deterioration in loan portfolios has affected the profitability of Japanese operations in California, where the California State Banking Department tracks income for state-licensed agencies and branches, the Fed stated in a recent report.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.