PRESS RELEASE
Provisional Translation |
April 12, 2002 |
Financial Services Agency |
Results of the Special Inspections on Major Banks |
The Financial Services Agency (FSA) carried out special inspections mainly
focusing on borrowers whose market reputations had been significantly changing.
The aim of the special inspections is to ensure an appropriate classification of
borrowers as well as sufficient level of write-offs and provisioning on a timely
basis, reflecting the borrowers’ business conditions and market signals against
them. The overall results of the special inspections are summarized as follows:
1. | Outline of the Special Inspections | ||||||
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2. |
Summary of the Inspection Results |
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Note) 1. |
The “Four (4) Industries” means: Construction, Real Estate, Wholesale and Retails, and Other Financial Industries. |
2. | Figures on the classification of borrowers are the comparison between the results of special inspections and those of self-assessments by individual banks as of end-September, 2001 (i.e. interim closing of accounts for the fiscal year 2002). It must be noted that even though inspectors initially judged to downgrade certain borrowers taking into account their financial conditions, such borrowers are not included in the above figures on downgraded borrowers if they had not eventually been downgraded due to the establishment of a business rehabilitation plan, etc. |
3. | Figures on the “total loss due to the disposal of NPLs” is the aggregated amounts of direct disposal of NPLs during the latter half of the fiscal year 2002 and of the increment of allowance for loan losses as of end-March, 2002. |
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