Small Consumer Lenders in Japan Rush to Restructure

That's what this story in The Japan Times reports. Portfolio holding Takefuji Corp. (8564/JP or TAKAF/OTC) isn't a small lender, but is mentioned in the piece:

Consumer finance companies, particularly midsize and small firms, are expected to restructure their operations as the government considers lowering the cap on consumer loan rates.

While major players such as Aiful Corp. and Takefuji Corp. have not yet announced any specific restructuring plans, smaller firms, including Shinki Co. based in Tokyo, and Earth Co. in Sapporo, have come up with plans to streamline.

This further down:

As moneylenders have mostly depended on the gray-zone interest rates between these two ceilings, which can be imposed if borrowers agree in writing, the elimination of the gray zone is expected to harshly affect their earnings.

Large lenders handle small-business loans and unsecured consumer loans, and will find it difficult to substantially reduce staffed outlets.

But the big firms will eventually have to follow the lead of their smaller rivals, reorganizing branch networks and cutting personnel, said a lending firm official.