The Bank’s baseline scenario of the outlook for prices – that is, the median of the Policy Board members’ forecasts of the year-on-year rate of increase in the CPI (all items less fresh food) – was 0.1 percent for fiscal 2015, 1.4 percent for fiscal 2016, and 3.1 percent for fiscal 2017 on a basis including the effects of the scheduled consumption tax hike, and 1.8 percent on a basis excluding such effects.
Since the action is taken when the troubled bank still has a net value, it is possible to look for market-based solutions and hence to reduce the burden borne by the deposit protection system or the public finances. The proportion of troubled banks subjected to restructuring that were liquidated rose from 6 to 16 per cent between 1990 and 1997.