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The legislation would impose a ceiling of 12percentt of an insurance company's equity on the amount that it can lend to any single creditor and a ceiling of 40percentt of assets on the extent of loans to a group and its subsidiaries.
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Lender forbearance is widespread, disguising the extent of bad loans.
Bank "stress tests" in countries like Spain continue to underestimate the true extent of bad loans.
Called the Takenaka Plan after Heizo Takenaka, who headed the government's financial reform efforts, the move finally brought the full extent of bad loans to light.
Six months after signing its initial agreement, HSBC pulled out in a dispute over the extent of nonperforming loans held by SeoulBank.
It did not explain why only eight banks joined the insolvency petition, or the extent of the loans to Wuxi Suntech by the unidentified ninth bank.
Still, investors have no way of knowing the full extent of problem loans on Finova's books because the company does not disclose the contents of its lending portfolio.
Carmen Reinhart of the University of Maryland, who has studied financial crises intensively, says policymakers chronically underestimate the extent of bad loans in the financial system and therefore the scale of bail-out costs.
"I am very interested to see what extent of new loans will be allocated to Navient.
In retaliation, Singapore refused to provide Sabah and Sarawak the full extent of the loans previously agreed to for the economic development of the two eastern states.
The ability to apportion resources and show this skill through good financial management to the extent of repaying loans is critical in today's world.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com