Reported 6 months ago
Norinchukin, Japan's leading agricultural bank with a $384 billion portfolio, is planning to revamp its investment strategy due to significant losses in its overseas investments. The bank's reliance on securities for profit, compounded by Japan's negative interest rates environment, led to losses in US government bonds after interest rate hikes by the Federal Reserve. Facing pressure to generate returns for farming cooperatives, Norinchukin aims to diversify its investment options, considering project financing abroad and increased asset management fees. The bank is also looking to raise 1.2 trillion yen in capital from its members, with some expressing concerns about the bank's investment strategy.
Source: YAHOO