Nonperforming loans held by Japanese banks totaled 36.8 trillion yen at the end of September, up 3.1 trillion yen from six months earlier, the Financial Services Agency said Friday.
The figure, calculated under criteria set by the Financial Reconstruction Law, reflects the deteriorating financial condition of borrowers amid the dismal economic environment despite banks' efforts to dispose of their problem loans, an FSA official said.
The increase also stemmed from banks' stricter assessment of the financial standing of their borrowers, the official added.