A. Amendment of Standards for Accumulation of Funds for Bad/Irrecoverable Debt Regarding Real Estate PF and Establishment of Handling Limit for Real Estate PF Debt Guarantee (Article 11 and 11-3)

This proposal aims to strengthen management of the solvency of real estate PF loans and debt guarantees made by specialized credit finance businesses by deleting downward regulations on the accumulation rate regarding real estate PF loans in keeping with other business areas and imposing the obligation to accumulate funds for bad/irrevocable debt at the same ratio applicable to PF loans on real estate PF debt guarantees and also aims to prevent the indiscriminate expansion in scope of real estate PF debt guarantees provided by specialized credit finance businesses by limiting the "total amount of real estate PF loans and debt guarantees" to 30% of credit assets.

B. Rationalization of Leverage Regulations (Article 7-3)

The leverage limit for card businesses shall be expanded to multiples of eight from multiples of six, provided that in the case of distribution of profits including or exceeding 30% of current net profits during the past year, the leverage limit shall be multiples of seven, and in order to induce productive finance such as business loans, etc., when calculating the total assets for leverage of specialized credit finance businesses, weighted values regarding household loans (115%), business loans (85%), and housing sale and lease loans (115%) shall be applied in gradation.