The Bank proposed these measures in its report titled “Japan’s Nonperforming Loan Problem,” released in October 2002. Adoption of the discounted cash flow (DCF) method, a measure recommended by the Bank, led to a general increase in banks’ loan-loss provision ratios in their financial statements for fiscal 2002.
I noticed a big change in attitude, however, when I last taught this course in the summer of 2009. Students took for granted that the connections between the economy and finance were crucial. There is an obvious explanation for this new-found awareness.