CHRONOLOGY

2002

Takenaka appointed FSA Minister launches heavily diluted Swedish style plan to resolve major banks' NPLs

1995

MoF realises private + public sector NPLs continue to snowball FILP + Local Government Reform launched

1992

Auditors' reservations on banking NPLs reportedly indicated 'inappropriate' by MoF given roll forward scheme

 

GLOSSARY

NPLs

Non Performing Loans furyo saiken

Establishment had been in denial of existence of contingent NPLs cf sakinobashi

contingent NPLs

NPLs contingently crystallisable

Establishment was in denial of the process cf niji sonshitsu, form over substance

NPLs contingent

loans liable to crystallise as NPLs

Establishment was in denial of the process cf niji sonshitsu, form over substance

NPLs crystallised

prior contingent NPLs crystallised

Establishment was in denial of the process cf niji sonshitsu, form over substance

akusaku

bad policy

MoF's past roll forward of NPLs the uneasy BoJ/Establishment compromise

collateralised

banks entirely dependent on property asset security

cash flow credit evaluation was non existent at banks cf tochi honisei, NPLs

debt deflation

the Fisher Thesis fusai defure

that this cripples debtors, their lending banks and demand cf Fisher, NPLs

Financial Services Agency

FSA kinyucho

was set up to warehouse NPLs now being squeezed between BoJ and MoF

Finland

classic banking crisis of early 1990s

crystallised NPLs 15 GDP percent and 20 loan book percent cf Sweden

FSA

Financial Services Agency kinyucho

under Heizo Takenaka successful resolution of NPLs now being de-emphasised

funshoku kessan

decorated or embellished financial statements

as funshoku kessan fraudulent set of financial accounts cf Sogo, NPLs

fusai defure

debt deflation Fisherian thesis

a process crippling debtors, their lending banks and demand cf Fisher, NPLs

guhatsu

contingent

as guhatsu saimu contingent liability, guhatsu furyo saiken contingent NPLs

kinyucho

Financial Services Agency

was set up to warehouse NPLs and is now squeezed between BoJ and MoF

niji sonshitsu

secondary newly crystallised NPL losses

deterioration of a bank's loan book after first bail-out cf contingent NPLs

satei

assessment

as furyo saiken o kibishiku satei suru to rigorously assess NPLs

Sweden

classic banking crisis of early 1990s

crystallised NPLs 10 GDP percent and 20 loan book percent cf Finland

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