This kind of behavior and a rapid rise in asset prices during the emergence of the bubble that accelerated credit expansion, worked together to amplify the excess in the business cycle. During the bursting of the bubble in the 1990s, Japanese banks simultaneously faced two problems: the non-performing asset problem and a further rise in pressure stemming from global competition.
Let me remind you of the message from central bank governors and heads of supervision that they would not significantly increase overall capital requirements across the banking sector in finalising international regulatory reforms. It is fully recognised by all public authorities that proper calibration of the regulatory burden needs to be ensured.