Loan Market Council Issues Report

The Loan Market Council, which was established on December 14, 2002 with JBA as its secretariat, produced a report on March 28.The report addresses, separately for performing loans and non-performing loans, measures to encourage loan transactions, as market participants and problems inherent to each differ according to the credit rating of loans. Specifically, the report indicates the necessity to compile statistics on transactions of both categories of loans. As for performing loans, the report calls for a definition of information that may be provided to possible purchasers of loans in consideration of banks' duty of confidentiality. In the case of non-performing loans, it indicates the necessity to collect and disclose information on both executed and offered transactions.