Japanese Bad Bank Loans Hit $98.5bn

Japan's Financial Services Agency (FSA) has revealed that the bad debts currently stand at $98.5bn.

The findings will result in huge write-offs for the Japanese institutions, but analysts feel that the banks will still be able to maintain the capital adequacy ratio of 8% required for internationally active banks.

The write-offs follow the Japanese FSA inspection of bank loans to 149 of the country's most troubled corporates.