6 June 2001, 09:30 Yanagisawa: FSA to issue new standard for measuring progress in NPL disposals
TOKYO (AFX-ASIA) - Minister of Financial Affairs Hakuo Yanagisawa
said the Financial Services Agency is planning to release a new
standard to measure the progress of banks' bad loan disposals in
addition to the existing benchmark.
"We are now considering a new benchmark to measure the progress of
banks' bad loan disposals, other than the existing ratio," Yanagisawa
told a parliamentary Lower House committee.
"We will release the new ratio by the time the government formally
announces its economic revival plan," he said.
Currently, the government uses the ratio of bad loans to total
lending as its benchmark for progress in non-performing loans, and
Yanagisawa said the government still hopes to see improvement in this
area.
"We hope the ratio of bad loans at banks to total lending should
fall to that of the U.S., which is slightly more than 1 pct," he said,
adding: "At present, Japan's overall ratio is 9 pct."
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