Japan's financial watchdog has warned regional banks about the risks of increased loans for real estate, saying it could lead to repayment defaults, sources close to the matter said Friday.Based on its hearings with the lenders, the Financial Services Agency has found cases in which the banks extended loans to individuals and real estate business operators without sufficiently assessing their credit quality, the sources said.By warning these banks, the agency hopes to prevent financial institutions from being saddled with massive nonperforming loans, as seen in the aftermath of the burst of…READ FULL ARTICLE
