EFETokyo

Japanese financial group Mizuho has decided to acquire U.S. loan assets from the Royal Bank of Scotland, RBS, according to sources privy to the transaction, Japanese news agency Kyodo reported on Thursday.

The sources did not specify the transaction's exact value, although they said the amount could be around the 500-billion yen figure ($4.2 billion).

The acquisition agreement between both entities could be made public Thursday, they added.

Mizuho, Japan's third-largest banking services group, seeks to take advantage of the sharp rise in credit demand in the United States resulting from the country's ongoing economic recovery.

Japanese financial institutions have recently been expanding their overseas loan businesses, given the narrow profit margins in their domestic operations limited by Japan's low interest rates.