Field Notes
Preparing Bank Confirmations for Japanese and Overseas Lenders
Confirmation requests fail more often from incomplete account lists than from reluctant banks.
Start with a complete list of yen and foreign-currency accounts, including dormant ones. Examiners still need to confirm zero balances when covenants mention ‘all deposit accounts.’
Japanese megabanks and regional banks respond on different clocks. Sending bilingual request forms with the company seal attached reduces return mail and follow-up calls.
For overseas lenders, attach the engagement letter excerpt authorizing direct contact. Without it, foreign banks often refuse to reply to an examiner they do not recognize.
Track outstanding confirmations weekly. A missing reply is not automatically a misstatement, but it does delay the report if cash is material to the balance sheet.
