JAPAN

Bad Loans Expected to Rise, Banking Official Says: Non-performing loans at Japan’s major commercial banks exceeded general loan loss reserves at the end of September and the number of bad loans is likely to rise, the chairman of the Federation of Bankers’ Assns. of Japan said last week. Kenichi Suematsu told reporters that loans with interest payments in arrears for more than six months at Japan’s 11 big commercial banks exceeded the $6.43 billion that the banks held in general loan loss reserves at the end of September. Japanese banks are required to set general reserves, which are tax-deductible, at .3% of outstanding loans.