[Provisional Translation]
Financial Services Agency
July 29, 2005

The Status of Non Performing Loans as of end-March 2005

1. Non Performing Loans (NPLs) based on the Financial Reconstruction Law (FRL)

The total amount of NPLs of all banks based on the definition in the FRL as of end-March 2005 is 17.9 trillion yen. The figure decreased by 8.7 trillion yen from 26.6 trillion yen as of end-March 2004.

As a result of improved soundness of bank loans, owing to improvement of some borrowers' business conditions and the progress of corporate revitalization, the total amount of bank loans classified as ''special attention'' decreased by 5.2 trillion yen, while there has been some newly generated loans due to some borrowers' weakened business conditions.

In addition, as of bank loans classified as ''doubtful'' and ''bankrupt/de facto bankrupt'', while there have been some newly generated loans and some loans downgraded from the upper category, the total amount of these loans decreased by 3.5 trillion yen as a result of removal of a greater amount of loans from banks' balance sheets.

[Table]
Breakdown of the factors of changes in NPLs based on the FRL as of end-March 2005

2. Specific Provision for Loan Losses

Reflecting the decrease of ''doubtful'' and ''bankrupt/de facto bankrupt'' loans, which are the object of allowances, the total amount of specific provisions for loan losses as of end-March 2005 stands at 4.4 trillion yen, decreased by 1.1 trillion yen from 5.4 trillion yen as of end-March 2004.

3. Total Loss Amount from the Disposal of NPLs

The total loss amount from the disposal of NPLs from April 2004 through March 2005 is 2.8 trillion yen, a decrease of 2.8 trillion yen from 5.4 trillion yen during the same period of 2004.

Table-1	Status of Non-Performing Loans (as of end-March 2005) (PDF:84K)
Table-2	Status of Non-Performing Loans (NPLs) based on the Financial Reconstruction Law (PDF:55K)
Table-3	Transition of Non-Performing Loans (NPLs) based on the Financial Reconstruction Law (PDF:36K)
Table-4	Total Losses on Disposal of Non-Performing Loans of All Banks (PDF:67K)
Reference:	Status of Risk Management Loans (as of end- March 2005) (PDF:75K)