Japan to exit COVID-era bank guidelines for borrower aid

TOKYO — Japan’s financial regulator will tell lenders next year to put more emphasis on turnarounds for troubled borrowers, in a shift from the cash flow support provided during the COVID-19 pandemic, Nikkei has learned.

Under revised guidelines due out next spring from the Financial Services Agency, borrowers are to be steered toward decisive restructuring rather than letting debt problems worsen by deferring payments.