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Banks and Other Financial Institutions

Non-Performing Loans (NPLs)

Q1: How much non-performing loans (NPLs) do Japanese financial institutions have?
Q2: Some people claim that the real total amount of NPLs is much larger than the figure announced by the Financial Services Agency (FSA). Is that true?
Q3: Some people say that the disposal of NPLs would produce a large amount of unemployment under the current tough recession. Why is the acceleration of disposal of NPLs an urgent issue?

Pay-Off (Reimbursement of Deposits)

Q4: What is the ''pay-off'' scheme? Why do you remove full protection of deposit?
Q5: How will the deposits be protected after the restart of the ''pay-off'' scheme?

Public Funds

Q6: Although no help is given by the Government in case of the bankruptcy of companies which are not financial institutions, why are only financial institutions rescued with public funds?

Banks' shareholdings restriction and Banks' Shareholdings Purchase Corporation

Q7: The ''Banks' Shareholdings Purchase Corporation (BSPC)'' was established to purchase shares sold by banks in accordance with the introduction of the banks' shareholding restriction. What is the objective of this corporation? Would it not distort market principles?

Inspection

Q8: What are the inspections for?
Q9: What are the Inspection Manuals? Do inspections include regulating loans by financial institutions?
Q10: What are special inspections?

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