Sound capital structure and asset portfolio compared with other major Japanese banks Comparatively weak business franchise and profitability Dependent on debentures for funding, making liquidity comparably less stable than that of other major Japanese banks Aozora Bank Ltd. is a long-term credit bank, originally established as Nippon Credit Bank Ltd. In September 2000, the bank gained independence from state control and relaunched under its current name. Since then, Aozora has reduced its NPLs through loan recovery and a loss-protection arrangement with the Japanese government. Furthermore, the bank has improved its risk management of loan assets. As a result, its asset portfolio is sound compared with other major Japanese banks, and its risk-managed loan balance fell below its bad debt reserves
