The Financial Supervisory Agency has decided that the Long-Term Credit Bank of Japan was in capital deficit as of Sept. 30, the end of the first half of this fiscal year, FSA officials said Monday.The FSA audited LTCB's books by measuring its securities and real estate assets at market value instead of purchase value, as it did at the end of March, and notified the troubled bank of the results Monday morning.LTCB's assets exceed liabilities if calculated according to the purchase prices, but withdrawals and declining Tokyo stock prices have taken their toll on its asset values. Its unrealized losses are now estimated at about 400 billion yen.Government officials refused to comment on the FSA's declaration, and LTCB stock finished up 2 yen from Friday's record-low close to hit 6 yen.
