Japan Post Bank to offer housing loans

Japan Post Bank has been conditionally allowed by the government to launch three new businesses.

These include offering housing loans, fueling concerns about fair competition between the government-backed entity and private-sector rivals.

A government panel discussing the privatization of postal services has recently granted similar approval to Japan Post Insurance Co., another unit of Japan Post Holdings Co.

In addition to housing loans, Japan Post Bank hopes to start offering fire insurance policies and corporate loans.

The bank hopes to start the businesses as early as April. But the FSA has shown reluctance against the backdrop  of protests from private competitors and concerns about the system with which Japan Post Bank will control its risk exposure.

The panel is expected to limit the area in which the lender can offer new products and impose strict rules for screening borrowers.

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