The Financial Services Agency on Friday officially disclosed the results of its latest inspections of major banks, downgrading credit assessments of 71 of the banks' 149 large corporate borrowers.
Given the results, the banks are set to book around 7.9 trillion yen in loan loss charges for the 2001 business year, which ended March 31, an increase of about 1.9 trillion yen.
It is expected that this will reduce the banks' capital adequacy ratios by about 1 percent from projections made in September, down to an average of 10 percent, an FSA official said.