the is truly wild. what’s the reason for this? if they don’t want unemployment
then just fund fast growing businesses?

> bank can offer more money to the ailing borrower which the borrower uses to continue making interest payments on their loans. Thus, the loan remains as an “asset” on the bank’s balance sheet, even though everyone involved understands that there is little chance the loan will ever be repaid. This creative bookkeeping allows the bank to accept more deposits and loan them out to other, hopefully more profitable, ventures. A combination of explicit regulations, regulatory forbearance, and implicit social pressures among the tight-knit group of Japanese business, banking, and government leaders promote this practice of zombie lending.

the is truly wild. what’s the reason for this? if they don’t want unemployment
then just fund fast growing businesses?

> bank can offer more money to the ailing borrower which the borrower uses to continue making interest payments on their loans. Thus, the loan remains as an “asset” on the bank’s balance sheet, even though everyone involved understands that there is little chance the loan will ever be repaid. This creative bookkeeping allows the bank to accept more deposits and loan them out to other, hopefully more profitable, ventures. A combination of explicit regulations, regulatory forbearance, and implicit social pressures among the tight-knit group of Japanese business, banking, and government leaders promote this practice of zombie lending.

https://open.substack.com/pub/maximumprogress/p/why-japan-succeeds-despite-stagnation?r=x5q64&utm_medium=ios