Japan consumer lenders brace for bad debt on ‘revenge spending’


 

TOKYO — An influx of new customers is increasing the risk of bad loans for Japan’s consumer finance industry, while lenders face higher funding costs as interest rates rise.

Total provisions for loan losses at Acom, Aiful and SMBC Consumer Finance grew about 30% on the year to roughly 120 billion yen ($817 million) for the first half of the fiscal year ending March 2024.