Japanese Bankers Association (Chairman: Yoshiro Yamamoto, President and CEO of The Fuji Bank, Limited) decided following items to be included for the quarterly report starting for the 1st quarter of FY2002 (April-June 2002).
This decision was made after the discussions at the Working Committee on Quarterly Reporting, that was established in October 2001 under the Planning Committee to discuss specific items to be disclosed on quarterly basis. This move was taken in response to the government's "Front-Loaded Reform Program" issued on October 26, 2001 by the Ministerial Meeting on Economic Measures, which requires major banks to make arrangements for disclosing their selected financial information on a quarterly basis as soon as possible.
Banks will disclose their selected financial information below as the first step. Japanese Bankers Association will continue to discuss this matter further, by taking into consideration the ongoing review of the Basel Capital Accord in Basel Committee on Banking Supervision.
1.Timing of disclosure
Banks will disclose below-mentioned items for the 1st and 3rd quarters (end of June and end of December respectively) of each fiscal year. Items to be disclosed for the year-end (end of March) and interim (end of September) period remain unchanged.
2.Example of disclosure items
(1) Amount of classified categories based on the Financial Reconstruction Law(on non-consolidated basis)
Banks will disclose amount of classified categories based on the Financial Reconstruction Law (Uncoverable or valueless / Risk / Special Attention) for the 1st and 3rd quarters. Simplified approach may be used, such as modifying the year-end or interim figures by taking into consideration major changes during the period including a sharp decline of borrowers' business performance or increase/decrease in credit to the specified major borrowers that have already been classified based on the law.
(2) Capital adequacy ratios (on consolidated basis)
Banks will disclose their estimated capital adequacy ratios at the end of September (March) for 1st (3rd) quarterly reporting. Banks with overseas offices estimate them based on the international standard (the Basel Capital Accord), while banks without overseas offices based on the domestic standard.
(Items to be disclosed)
- Total capital ratio
- Tier I capital ratio
(3) Fair value information(on non-consolidated basis)
(Items to be disclosed)
i.Investment Securities
Fair value, book value and unrealized gain or loss by major category.
ii.Derivatives
Notional amount, fair value and unrealized gain or loss by major category.
(Optional items to be disclosed at the banks’ discretion)
Information on interest risks in banking book (e.g. VaR)
(4) Other qualitative information
Banks will disclose supplemental information to explain above (1) - (3) and others when deemed necessary.