The still weak asset quality and the impaired capital
base are constraining factors.
As you are aware, Blue Pacific has made several efforts to resolve PaperlinX's impaired capital
structure amicably to the benefit of all stakeholders.
Additionally, credit union-to-credit union transactions often occur when the to-be-acquired credit union is troubled and has an impaired capital
According to Credit Suisse Research's latest edition of Global Investor, 'The initial direct shock from impaired capital
positions of banks on credit availability has generally been lower in emerging markets and external debt levels have declined in recent years.
Some insurance companies withdrew from the market because of their inability to compete successfully, impaired capital
positions or because of a decrease in the availability of reinsurance.
For impaired capital
assets that will continue to be used by the government, the amount of impairment--the portion of historical cost that should be written off--should be measured by the method described below that most appropriately reflects the decline in service utility of the capital asset.
Furthermore, for permanently impaired capital
assets, the appropriate accounting and financial reporting depends on whether the asset is expected to remain in service.
Bank of Japan (BOJ) Governor Masaru Hayami said Wednesday an additional injection of public funds into banks may become necessary if they fail to improve their impaired capital
bases through self-support efforts.
Japan has funneled more than 10 trillion yen in public funds into banks' impaired capital
accounts since March 1998 to keep their depleted capital bases from crimping their ability to provide credits to businesses.
The credit crunch experienced in New England over the past two years is an example of a severe regional economic shock that was magnified by the impaired capital
position of most New England depository institutions.
David Straus, President and CEO of Fortune Bank, commented, "Many banks in our market have been operating with impaired capital
or regulatory sanctions and have been unable to meet the financing needs of their customers.
1], we believe that PaperlinX has an impaired capital
structure that restricts the Company's future prospects.