Kathmandu. Rising interest rates in Japan have raised the possibility of Kyoto Financial Group selling its shares in companies including Nintendo and Kyocera to make a potential profit of about $6 billion.
According to the company’s chairman, Nobuhiro Doi, it is possible to earn more by selling the shares and investing the proceeds in loans rather than maintaining the investment.
Japan’s regulators have been urging banks and companies to reduce strategic investments in each other’s stocks, or cross-shareholdings, in a bid to improve corporate governance.
Kyoto Financial aims to reduce its strategic share investment by more than 300 billion yen by March 2029. The company sold shares worth about 160 billion yen in the previous fiscal year, including some shares of Nintendo.
With the increase in interest rates, the possibility of income from the bank’s loan transaction has increased. Therefore, the proceeds from the sale of shares can be used to issue additional loans or acquire other companies.
