"With weak balance sheets, banks tend to continue lending unprofitable businesses and leave them existing"

This quote by Toshihiko Fukui speaks with the problem of banks remaining to provide to unprofitable organizations in spite of their weak annual report. This is an usual issue in the banking market, as banks are commonly hesitant to cut off providing to organizations that are not profitable. This can result in a scenario where companies are survived regardless of their absence of earnings, which can be detrimental to the total economy.

The quote recommends that banks should be a lot more sensible when it concerns providing to unprofitable businesses. Financial institutions ought to consider the financial health and wellness of business before financing, as well as need to want to remove lending if business is not most likely to become rewarding in the near future. This would assist to make sure that banks are not propping up organizations that are not most likely to succeed, and also would assist to ensure that the financial industry is not taking on as well much risk.