Banks have £136bn exposure to Japan, FSA says

UK banks have about £136bn of exposure to crisis-struck Japan, but it is "too soon" to judge the full hit to Britain's financial sector, the FSA says.

The estimate from the FSA, based on Bank of England figures, comes as the country battles to stave off a nuclear meltdown following its devastating earthquake and tsunami. Its comments to the Press Association follow fears over a huge claims bill for insurers, which has sent shares in the sector plunging since last Friday's events. News of the banking exposure also comes at a difficult time for the sector, which has been left reeling on concerns over vulnerability to debt-laden Portugal - which suffered a credit ratings downgrade. The FSA says it is trying to establish the total im...