The disposal of bad loans in Japan: A review of recent policy initiatives

Abstract

In this text, we will review the origins, structure, and operations of the Cooperative Credit Purchasing Company through fiscal year 1993. We will addend to this an overview of the proposed formation of special purpose companies (SPCs) to assist banks in the disposal of a different class of outstanding loans. In conclusion, we will assess how these measures fit into the Japanese approach to the reconstruction of bank balance sheets