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Second, weak banks have been reluctant to recognise, and hence make provisions for, non-performing loans.
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The official figure for non-performing loans, at 18%, may be far too low.
Investments in agencies like DARPA are one thing, but government subsidies are crutches for non-performing industries.
The stock of all provisions held against all non-performing loans is lower than in other countries, particularly at the state-owned banks that dominate the industry.
Ratesetter, a consumer-loan platform, has some very bank-like features, like a provisioning fund to cover non-performing loans.Some regulators have big hopes for peer-to-peer lending: Andy Haldane, of the Bank of England, suggested earlier this year that the upstarts could make conventional banks obsolete.
For every non-performing loan, there is a non-performing borrower many of whom are big supporters of politicians in the ruling Liberal Democratic party (LDP).
But in the world of the bottom line, those are the breaks for any non-performing CEO.
And once we announced the AQR, some regulators made sure banks would reclassify their loans as non-performing, and provisions against them, or raise capital, or deleverage.
"If the company is declared bankrupt, the [banks'] exposures will have to be classified as non-performing and provisions will have to be set aside," said Nomura banking analyst Paola Biraschi.
A possible explanation for the discrepancy between the results is that we hold constant anticipated capital drops by controlling for the change in non-performing loans.
For other solar farms, thermal imaging is a tool that is used to identify non-performing panels for replacement.
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