Finance Minister Hikaru Matsunaga disagreed Wednesday with Bank of Japan Gov. Masaru Hayami, saying commercial banks should not disclose some of their problem loans to avoid hurting borrower firms.
Matsunaga was referring to "second category" loans, which includes those considered recoverable depending on borrowers' efforts.
On Tuesday, Hayami issued an unusual statement urging each bank to further disclose the amount of its problem loans based on internal assessment. Expanded disclosure will help expedite bad-loan disposal, he said. Bad loans are considered to be the primary drag on the stagnant economy.