[Provisional Translation]
Financial Services Agency
Junuary 20, 2006

The Status of Non Performing Loans as of end-September 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-September 2005 is 15.9 trillion yen. The figure decreased by 2.0 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 0.7 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 1.3 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-September 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-September 2005 stands at 3.8 trillion yen, decreased by 0.5 trillion yen from 4.4 trillion yen as of end-March 2005.

3.  Total Loss Amount from the Disposal of NPLs

The total loss amount from the disposal of NPLs from April 2005 through September 2005 is 0.2 trillion yen, a decrease of 1.3 trillion yen from 1.5 trillion yen during the same period of 2004.

• Table-1 Status of Non-Performing Loans (as of end-September 2005) (PDF:68K)
• Table-2 Status of Non-Performing Loans (NPLs) based on the Financial Reconstruction Law (PDF:57K)
• Table-3 Transition of Non-Performing Loans (NPLs) based on the Financial Reconstruction Law (PDF:60K)
• Table-4 Total Losses on Disposal of Non-Performing Loans of All Banks (PDF:113K)
• Reference: Status of Risk Management Loans (as of end-September 2005) (PDF:76K)

4.  The newly data released newly for this period

For convenience regarding statistical data, we released one in which past data was put in time series as best as possible, including one that has been released up to now.

From now on, formal data released in this HP will be released in the following form.

• Table-1 The Transition of Non-Performing Loans based on the Financial Reconstruction Law
  • (Excel)    (PDF:123K)
• Table-2 Breakdown of the factors of changes in NPLs of All Banks based on the FRL
  • (Excel)    (PDF:93K)
• Table-3 The Transition of The Status of Coverage of NPLs based on the Financial Reconstruction Law
  • (Excel)    (PDF:49K)
• Table-4 The Transition of Valuation for Real Estate Collateral (Value Available for Sale) and Sales Value
  • (Excel)    (PDF:41K)
• Table-5 The Transition of Total Losses on Disposal of Non-Performing Loans of All Banks
  • (Excel)    (PDF:91K)
• Table-6 The Transition of Risk Management Loans
  • (Excel)    (PDF:68K)
• Table-7 The Transition of Results of Self-Assessment of Assets by Banks
  • (Excel) (PDF:61K)