Good news is that banks’ lending attitude seems to be gradually becoming far more accommodative than in the previous recoveries. This shows that major banks in Japan have made good progress in  2  BIS Review 41/2004  solving non-performing loan problems. The resultant improvement in bank balance sheets is expected to enhance their loan capacity.
Well-functioning financial systems are important in achieving sustained economic growth. They play a crucial role in channeling household savings into the corporate sector and allocating investment funds among firms. Demographic changes The aging and decreasing population is a serious problem in many developed countries today.