Moreover, consumers have kept spending, which has kept the economy buoyant and problem loans low.
These measures will help reduce these problem loans to less than 10% of total lending portfolios.
Worse, problem loans are turning bad as fast as the banks can write them off.
Still, Malaysia used the relative calm created by the controls to get to work on problem loans.
Nonetheless, do not expect the new number to fully account for problem loans.
Bangkok Bank and Thai Farmers Bank are among the bigger banks which are run more professionally and have fewer problem loans.
Foreclosures and problem loans have thrown millions of American households into crisis.
Cut the level of bad debt by requiring banks to use their profits for the next five years to write off problem loans.
NCB with its sclerotic big-company culture, fascinatingly large collection of bad and problem loans (about one-third of assets) and 2, 500 employees will be a job and a half.
It castigated the investment bank after one of its analysts speculated that the problem loans of Hana Bank, which is based in Seoul, may be rising.
Moody's Investors Service last week lowered its ratings on three of Japan's biggest banks, warning that problem loans are increasing faster than the banks can write them off.
They have a window of opportunity in the first months of 1999 to make the hard choices on bank recapitalization, a new central bank law, problem loans and forced consolidation.
The mortgages that resulted are now problem loans for the GSEs, the FHA and the big banks that were required to make them in order to burnish their CRA credentials.
The banks could not, as a practical matter, raise capital if they revealed the extent of their problem loans (or, if they could do so, the cost would go way up).
Vasco Moreno of Fox-Pitt, Kelton, a stockbroker, says that fully 22%, or euro16 billion, of the bank's gross lending fell into the category of non-performing or problem loans at the end of 2000.
Many of China's banks are already beset by problem loans, in part because they have long been obliged for policy reasons to extend capital to enterprises that by normal banking criteria would be deemed poor credit risks.
It will be important, therefore, to achieve full and credible recognition of loan losses, to ensure that capital injections are accompanied by strong commitments to restructuring, and to promote the resolution of problem loans through liquidations or workouts.
According to a recent report by bank regulators, problem loans among syndicated lending to companies by groups of banks rose to 5.1% in the second quarter of this year, up from a record low of 2.5% in 1998.
The US had been collecting this gold since WW I as payments on wartime loans, a problem accelerated by new loans for WW II.
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What's more, there is a particular problem with SME loans, which by nature are idiosyncratic.
The problem with 401k loans is that you have to repay them over such a short period of time (five years).
The real problem with federal farm loans is that they are prejudiced against common sense and sound business practices.
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And why did he have to identify the problem on the small loans?
There is also the problem of identifying recipients of loans from state-owned banks by type of ownership.
Finally, Japan's prime minister, Junichiro Koizumi, reconfirmed the government's resolution to normalise the problem of non-performing loans by the end of the 2004 fiscal year at the latest.
The combination of still-high bank charges and shrinking loans suggests the problem lies with the supply of credit not demand for it, says Kevin Daly at Goldman Sachs.
Argentina's problem was that bank deposits and loans were largely dollarised, creating huge problems when its currency sank.
We're not looking for -- the solution to this problem is not to give out loans to people that can't pay them back.
Bad loans are a particular problem in Germany, Europe's largest economy, which is still struggling with the effects of unification more than a decade ago.
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