Authorities have been urging lenders such as Kyoto Financial to phase out the practice of cross-shareholdings to improve corporate governance.
Japan’s rising interest rates are giving Kyoto Financial Group more reason to cash in on some of its $6 billion in paper gains on cross-shareholdings. That’s put the lender under the spotlight in the long-held tradition of cross-shareholdings, where banks and businesses own pieces of each other to cement ties.
Extract — continue reading at the source.