Subprime losses to reach ¥626 billion

Japanese financial institutions are likely to book losses totaling ¥626 billion in business 2007 as a result of the U.S. subprime loan crisis, according to their reports released by Tuesday.

The projected figure includes appraisal losses on securities holdings linked to subprime housing loans extended to borrowers with poor credit histories in the United States.

In the April-September first half of the business year, banks, credit unions and other financial concerns booked a total of ¥370 billion in charges against subprime-related losses.

The total included ¥145.6 billion written off by Nomura Holdings Inc., Japan's biggest securities house.

The outstanding balance of subprime-related securities held by financial institutions totaled ¥1.33 trillion at the end of September.

Norinchukin Bank on Tuesday became the latest major Japanese financial institution to release a report on subprime-linked losses, saying the total was ¥105.7 billion for the April-September period.