Japanese corporate failures in 2001 surged to their second-highest level since the war, a private credit research agency said today.
"The number of bankruptcies, 19,441 cases, is the second highest level in the post-war era," Teikoku Databank said.
The figure is 1.9 per cent higher than the previous year, marking the second straight annual rise. The record high was reached in 1984, when 20,841 businesses collapsed.
Total liabilities by bankrupt firms in 2001 came to 16.2 trillion yen ($122.6 billion), also the second-largest figure seen since the war, after a record 23.99 trillion yen in 2000, Teikoku said.
"A series of large-scale failures by such firms as insurance companies, general construction firms and major retailers resulted in the large amount of liabilities," the research firm said.
Recession-induced bankruptcies totaled 14,687 cases, a record high since World War II.
Bank of Japan (BOJ) governor Mr Masaru Hayami said today the central bank would help prevent the country's frail financial system from collapsing, promising to step in with more liquidity in case of such a risk.
The BOJ is prepared to offer adequate liquidity if needed to stabilise the financial system, he said in a speech. He also said banks were making progress on this front by writing off their bad loans.
AFP