Japan is still in the process of resolving the nonperforming-loan problem. Therefore, the lessons that will ultimately be learned from it is not yet known. Nevertheless, I believe it is meaningful to go over the lessons we have learned to date from our experiences in order to successfully build a new financial system.
As we started hearing more about problems encountered by small businesses in accessing credit, we again tapped the broad footprint of the Reserve Bank system and the web of local contacts they have developed to help us better understand the issues surrounding loans to small business.