Note 2-12

(12) The RCC purchases loans from sound financial institutions as well as bankrupt ones under Article 53 of the Financial Reconstruction Law. Its purchases in fiscal 2002 expanded sharply from about ¥0.3 trillion in fiscal 2001 to about ¥2.1 trillion. The expansion may be attributable partly to RCC-enhancing measures, including more flexible purchases like those at market prices, and its participation in auctions to help diversify purchasing means.