August 8, 2006
Financial Services Agency
Government of Japan
The Status of Non Performing Loans as of end-March 2006
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 2006 is 13.4 trillion yen. The figure decreased by 4.6 trillion yen from 17.9 trillion yen as of end-March 2005.
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 1.2 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 3.4 trillion yen as a result of removal of a greater amount of loans from banks' balance sheets, etc.
Breakdown of the factors of changes in NPLs based on the FRL as of end-March 2006
2. Specific Provision for Loan Losses
Owing to the progress of corporate revitalization, the total amount of specific provisions for loan losses as of end-March 2006 stands at 2.9 trillion yen, decreased by 1.5 trillion yen from 4.4 trillion yen as of end-March 2005.
3. Total Loss Amount from the Disposal of NPLs
Owing to the returning profits of provisions by some banks, the total loss amount from the disposal of NPLs from April 2005 through March 2006 is 0.4 trillion yen, a decrease of 2.5 trillion yen from 2.8 trillion yen during the same period of 2005.
- Table-1 The Transition of Non-Performing Loans based on the Financial Reconstruction Law
- Table-2 Breakdown of the factors of changes in NPLs of All Banks based on the FRL
- Table-3 The Transition of The Status of Coverage of NPLs based on the Financial Reconstruction Law
- Table-4 The Transition of Valuation for Real Estate Collateral (Value Available for Sale) and Sales Value
- Table-5 The Transition of Total Losses on Disposal of Non-Performing Loans of all banks
- Table-6 The Transition of Risk Management Loans
- Table-7 The Transition of Results of Self-Assessment of Assets by Banks
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