Financial Services Agency
January 21, 2005
The Status of Non Performing Loans as of end-September 2004
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-September 2004 is 23.8 trillion yen. The figure decreased by 2.8 trillion yen from 26.6 trillion yen as of end-March 2004.
The total amount of loans classified as ''special attention'' decreased by 4.1 trillion yen, as a result of upward migration of special attention loans, owing to the improvement of business conditions and the progress of corporate revitalization, and of downward migration to ''doubtful'' and ''bankrupt/de facto bankrupt'', while the new accumulation of NPLs due to the weakened business activities still can be seen.
In addition, the total amount of loans classified as ''doubtful'' and ''bankrupt/de facto bankrupt'' increased by 1.3 trillion yen as a result of the new accumulation of NPLs due to the weakened business activities and the downward migration from upper categories, while steady efforts by banks to remove these loans from their balance sheets still can be seen.
Breakdown of the factors of changes in NPLs based on the FRL as of end-September 2004
2. Specific Provision for Loan Losses
The total amount of specific provisions for loan losses as of end-September 2004 stands 6.1 trillion yen, increased by 0.6 trillion yen from 5.4 trillion yen as of end-March 2004. The increase of the specific provision mainly reflects the increase of loans classified as ''doubtful'' and ''bankrupt/de facto bankrupt'', the object of this allowance.
3. Total Loss Amount from the Disposals of NPLs
The total loss amount from the disposal of NPLs from April 2004 through September 2004 is 1.5 trillion yen, a decrease of 1.0 trillion yen from 2.5 trillion yen during the same period of 2003.
For further information, please contact:
Supervisory Coordination Division
TEL: 03-3506-6000(ext. 3306)
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