Japanese regional banks are aggressively expanding their unsecured retail loaning contractor, tempted by the segmentapos; s fat margins now that the countryapos; s mainreserve bank has compressed already ultra-low rate of interest into negative territory.Unsecured loans, generally providingproviding to Y1 million($A11,888)in quick money for anything from shopping journeys to holidays, can regulate interest rates of near 15 percent in many cases-method above rates for contractor like mortgages or little firm borrowing. CarVehicle loan are also popular.Small-sized loans combined with high profit margins make the threat of loaning without collateral worth taking for the banks.In an over-banked, low-return market, the hunt for domestic yield is much more pressing for Japanapos;

s scores of regional loan providers than international giants like Mitsubishi UFJ Financial Group Inc, able to draw on overseas and financial investment banking.Bank of Yokohama, Japanapos; s No 2 local lender by possessions, said its outstanding unsecured retail loan portfolio jumped 39 per cent year-on-year to 59.4 billion yen for the first financial half ended last September.Continued growth at that rate would see it beat its own target of 70 billion yen for the YEAR through March.With interest rates falling on all other loans such as contractor and mortgagehome loan, they are pretty much the only one we can make earnings on, stated an authorities at the bank.While Bank of Yokohamaapos; s unsecured loans make up just a fraction of its general retail financing of 4.9 trillion yen, their margins are extremely attractive as customers are prepared to pay a higher rate of interest for funds

extended relatively easily and quickly.