The main factors behind the generation of NPLs just after the bursting of the bubble have been the excess debt of firms and the price decline in real estate purchased, but factors stemming from structural changes in industries have gradually became dominant in recent years.
The number of firms which are forced to undergo drastic restructuring is expected to increase from now on as structural reform progresses, and there is concern that banks’ loan assets will deteriorate in the process. To make loans to small and medium-sized firms becomes an important future challenge.