Japanese regulators have criticised Sumitomo Mitsui Banking Corporation for making customers buy interest rate swaps in exchange for extended loans. The Fair Trade Commission (FTC) said small business customers of SMBC were told they could receive loan extensions only if they agreed to take the fixed side of interest rate swaps contracts as part of the package. Low interest rates meant the businesses ended up paying up to 200bp more than they would on a variable loan.
The FTC did not penalise
The week on Risk.net, May 12-18, 2018Receive this by email