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JapanEconomy3 days ago

Japan's big banks weigh financing arms makers in break with past

Japanese major banks are reconsidering their policies on financing defense companies, moving away from a strict avoidance stance due to increased geopolitical tensions and the government's recent decision to allow the export of lethal weapons.

Aerospace & Defense Industries

Rule changes spur private sector to rethink de facto ban

A Mogami-class frigate. Japanese financial institutions are considering greater involvement in the country's defense sector. (Photo by Rurika Imahashi)

YUMIKO OSHIMA

June 18, 2026 06:33 JST

TOKYO -- Major Japanese banks are cautiously shifting from a blanket policy of avoiding loans to security and defense companies to one of measured consideration, driven by heightened geopolitical risks and the government's April decision to lift the ban on exports of lethal weaponry.

Read the full article at Nikkei Asia →
Source document: Government decision to lift the ban on exports of lethal weaponry

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Nikkei AsiaIndependent🔒Center
Japan's big banks weigh financing arms makers in break with past

Japanese major banks are reconsidering their policies on financing defense companies, moving away from a strict avoidance stance due to increased geopolitical tensions and the government's recent decision to allow the export of lethal weapons.

Bias read (Center): The article presents factual information without overtly favoring any political side. It describes a shift in banking policy influenced by geopolitical factors and government decisions, without using biased language or selective sourcing.

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  • government Government decision to lift the ban on exports of lethal weaponry

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  • governmentGovernment decision to lift the ban on exports of lethal weaponry