No. 36 — September 24, 1999

 

Weekly Review

JAPAN'S NONPERFORMING-LOAN PROBLEM REFUSES TO GO AWAY

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 Table 3: All Banks' Reported Losses on the Disposal of Nonperforming Loans,
FY 1992-FY 1999

(in billions of yen)

Direct Write-Offs

Losses on Disposal of Bad Loans

Net Transfer to Specific Allowances for Loan Losses

Write-Offs of Loans

Loss on Sales to the CCPC

Total

FY 1992

¥1,640

¥945

¥204

¥219

¥424

FY 1993

3,872

1,146

235

1,855

2,090

FY 1994

5,232

1,402

706

2,103

2,809

FY 1995

13,369

7,087

1,721

2,526

5,980

[11,067]

[5,576]

[1,568]

[2,132]

[5,490]

FY 1996

7,763

3,447

973

1,133

4,316

[6,210]

[2,534]

[850]

[971]

[3,676]

FY 1997

13,258

8,403

851

1,043

3,993

[10,819]

[6,552]

[791]

[921]

[3,501]

FY 1998

13,631

8,118

2,377

359

4,709

[10,440]

[5,490]

[2,255]

[339]

[4,268]

FY 1999

6,944

2,531

1,881

278

3,865

[5,398]

[1,339]

[1,734]

[272]

[3,609]

Cumulative Since FY 1992

Loss on Disposal of Bad Loans

Direct Write-Offs

Nonperforming Loans

Outstanding Amount fo Specific Allowances for Loan Losses

FY 1992

¥1,640

¥424

¥12,775

¥3,698

FY 1993

5,512

2,514

13,576

4,547

FY 1994

10,744

5,322

12,546

5,536

FY 1995

24,113

11,302

28,504

13,293

[21,811]

[10,812]

[21,868]

[10,345]

FY 1996

31,877

15,618

21,789

12,334

[28,021]

[14,488]

[16,441]

[9,388]

FY 1997

45,135

19,611

29,758

17,815

[38,840]

[17,988]

[21,978]

[13,601]

FY 1998

58,766

24,320

29,627

14,797

[49,280]

[22,256]

[20,250]

[9,258]

FY 1999

65,710

28,185

30,366

12,230

[54,678]

[25,865]

[19,772]

[7,678]

Notes:

1. For FY 1999, the combined figures for all banks and cooperative financial institutions were: Losses on Disposal of Bad Loans, ¥8,144 billion; Net Transfers for Allowances for Loan Losses, ¥3,397 billion; and Direct Write-Offs, ¥4,098 billion.

2. Through FY 1994, the data reflected only nationwide commercial banks, long-term credit banks and trust banks. Beginning in FY 1995, the main figures cover all banks, while those in brackets refer to the group of major banks.

3. Hokkaido Takushoku Bank, Ltd., Tokuyo City Bank, Ltd., Kyoto Kyoei Bank, Ltd., Naniwa Bank, Ltd., Fukutoku Bank, Ltd. and Midori Bank, Ltd. are excluded from FY 1997 on because they failed. Long-Term Credit Bank of Japan, Ltd., Nippon Credit Bank, Ltd., Kokumin Kouhuku Bank, Ltd. and Tokyo Sowa Bank, Ltd. are excluded from FY 1998 on because they failed. Namihaya Bank, Ltd. and Niigata Chuo Bank, Ltd. are excluded from FY 1999.

4. Net Transfers to Allowances for Loan Losses refer to the total of Net Transfers to Specific Allowances for Loan Losses and Net Transfers to General Allowances for Loan Losses.

5. Direct Write-Offs refer to the total amount of write-offs of loans, losses on sales of loans and losses on support extended to other financial institutions. However, before FY 1994, this figure was composed only of write-offs of loans and losses on sales of loans to Cooperative Credit Purchasing Co., Ltd.

6. Through FY 1994, disclosed nonperforming loans were composed only of loans to borrowers in legal bankruptcy (LBB) and loans past due six months or more (PDL). In both FY 1995 and FY 1996, disclosed bad loans were composed of LBB, PDL and restructured loans. Since FY 1997, nonperforming-loan figures also include loans three to six months past due.

Source: Financial Supervisory Agency (http://www.fsa.go.jp/news/newse/e20000728-1b.html).

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