Host: The Japan Society for Management Information
A large number of earlier studies partially revealed the mechanism of the non-performing loan accumulation of Japanese banks in 1990s. However, no study has yet conducted the variable selections from the mound of factors including the competitive environment, the monitoring stance to borrowers, the dependency on specific counter-parties, or the characteristics of bank managers. This study, using an artificial intelligence approach, explored some key influential factors on the accumulation of non-performing loans. As a result, (1) the allocation of management resources to borrowers, (2) the dependency on some specific counter-parties, and (3) the delay in the reduction of non-core expenses have been proven a key factor, in the past and present.