Note 1-32

(32) The estimation was made on the presumption that the link (beta) between stocks held by major banks and the market (Nikkei average) is 0.6. In addition, major banks hold bonds of about 57.3 trillion yen and have unrealized profits of about 0.5 trillion yen as of the end of March 2003, on a consolidated basis. Given this, estimation was made on the presumption that the average time to maturity of bonds held by major banks is four years and that yield curve shifts in a parallel way. According to this, the effect of a rise of the long-term interest rate by 0.5% is estimated to be a deteriorating effect of about 1.2 trillion yen. Incidentally, since these estimations are based on certain presumptions as mentioned above, the results should be considered to have a margin of error.