Though the Japanese Ministry of Finance apparently is advising banks that it would be prudent to apply a 100% risk weight to mortgage-backed securities, American experts believe most Japanese banks will be able to go on using lower American risk weightings instead.

In the diplomatic world, where communication often takes the form of hints and other indirect modes, no one would dare lobby the MoF directly. But several sources have confirmed that there have been recent attempts to persuade the MoF that the American risk-weighting standards are appropriate for the MBS issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

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