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| Strategic Initiatives and Actions |
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Capital Ratio (Domestic standard)
On March 31, 2002, the Bank’s capital ratio stood at 9.90%, remaining at a high level. (The Bank does not issue subordinated loans.) The ratio of Tier I capital, which represents the fundamental portion of capital, was 8.39%, well above the 8% mark required for a soundly managed bank. These figures rank us highly among Japanese regional banks and testify to the health of the Bank’s operations.
Non-Performing Loans
The Bank continues to rigorously write down non-performing loans and provide reserves for possible loan losses. Our activities here conform to the guidelines issued by the Financial Services Agency. Based on the results of asset assessments according to the Financial Revitalization Law, the fiscal year-end total of non-performing claims — the sum of unrecoverable loans, risk loans, and special-attention loans — was ¥115.8 billion (US$869 million), or 7.58%, which is below the national average for regional banks.
The portion of these claims covered by reserves for possible loan losses and collateral or guarantees totaled ¥98.9 billion (US$742 million), representing a high 85.47% coverage level. The remaining portion of ¥16.9 billion was adequately covered by the Bank’s shareholders’ equity, which amounted to ¥130.5 billion (US$979 million) at fiscal year-end.
Loans Disclosure According to
Financial Reconstruction Law Standards |
| Million of yen |
| Unrecoverable |
¥43,910 |
| Risk |
52,998 |
| Special-attention |
18,893 |
| Subtotal (A) |
115,801 |
| Unclassified (B) |
1,411,195 |
| Total (A)+(B) |
1,526,996 |
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Coverage of Claims Classified Under
Financial Reconstruction Law Standards
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| Million of yen |
Total coverage (D)
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¥98,980 |
Reserve for loan losses
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43,832 |
Specific reserve for loan losses
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— |
Collateral or other guarantees
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55,148 |
| Coverage ratio (D)/(A) |
85.47% |
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