In fiscal 2000, Japanese banks recorded small net losses for the year for the first time in two years. This was mainly because the amount of nonperforming loan (NPL) disposal continued to exceed operating profits from core business. Financial strength weakened as unrealized capital gains on...

In fiscal 2001 (April 2001-March 2002), Japanese banks recorded large net losses because they disposed of nonperforming loans (NPLs) and wrote off stocks in a substantial amount. As a result, banks' capital account decreased considerably, and unrealized capital gains on securities fell close to...

The environment surrounding the business of Japanese financial institutions remains severe due mainly to the prolonged weakness in the economy and the continuous downtrend in land prices. In addition, developments in stock prices including those of banks remain unstable. The Bank Examination and...