Developments in Profits and Balance Sheets of Japanese Banks in Fiscal 2000 and Banks' Management Tasks

In fiscal 2000, Japanese banks recorded small net losses for the year for the first time in two years. This was mainly because the amount of nonperforming loan (NPL) disposal continued to exceed operating profits from core business. Financial strength weakened as unrealized capital gains on securities decreased and as risk-based capital adequacy ratio declined, mainly reflecting the net losses recorded for the fiscal year.