BANKING & FINANCE - March 27, 1996

9 Japanese Banks Expect Losses: The release of revised earnings forecasts confirmed expectations that most of Japan’s large banks will go into the red for the fiscal year ending March 31 in an effort to clear their books of bad loans to failed housing lenders, or jusen. Three commercial banks--Asahi, Daiwa and Sakura--joined six trust banks in predicting losses for the fiscal year. Two other major banks, Sumitomo and Dai-Ichi Kangyo, lowered their earnings forecasts but predicted they will manage stay in the black for the year despite the write-offs. The nine banks announcing expected losses joined six others that have already said they will lose money for the year because of loan losses. Actual earnings reports for the fiscal year will be announced in late May.