A question of priorities

The clock is ticking towards the proposed implementation date for the new Basel capital Accord in 2006. Yet for many of Japan’s banks, the need to ramp-up resources and investment in preparation for Basel II has been overshadowed by an urgent requirement to restructure balance sheets overwhelmed by non-performing loans and volatile cross-shareholdings.

And with the Japanese government pledging to finally resolve the non-performing loan (NPL) problem, as well as force the unwinding of banks’