It is more comprehensive than the concept used previously, as it incorporates the possibility of debtors with payments in arrears continuing to fail to meet their credit commitments. It is in line with the NPL definition used by the IMF, reinforcing the comparability and transparency of information on credit quality.
In these circumstances, short- and long-term contracted interest rates for new loans and discounts (up to July) have moved at record low levels. On the stock exchange, the Nikkei 225 stock average moved at around ¥ 21,000 between May and July 1997, but later declined, partly reflecting the fall in U.S. stock prices.