Japan's regulators try to resolve banks' bad loans

JAPAN - In recent years, Japan has repeatedly frustrated foreign investors with its failure to resolve its decade-long bad loan mess.

Now, the government is trying to calm anxieties yet again.

On Friday the Financial Supervisory Agency (FSA), the main banking regulator, announced a "three-pillared" scheme to tackle banks bad loans.

This includes better government inspections of the banks, higher bank provisions for large, troubled borrowers and an initiative to encourage banks to sell loans to a

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