In this way, relying on market financing tools, banks faced pressure from market participants who recognized valuation losses, and the authorities had no choice but to inject capital into banks at an early stage using public funds.
On the other hand, in the case of Japan, the funding of non-performing assets was mainly carried out by banks, which did not rely so much on capital markets. This funding structure failed to exert strong pressure on concerned parties to deal with non-performing assets promptly. The third difference is the relatively small burden shouldered by domestic investors.