In a distributed processing system having a plurality of interconnected subsystems of equal level, each subsystem operates to diagnose faults in other subsystems and protects its own subsystem based on the diagnosis of the faults of the other subsystems. The subsystems may be network control processors connected to common signal transmission lines, each of which carries major and minor loop check messages used to detect the faults in the other network control processors and constitutes a bypass route to protect its own unit when the fault occurs. If a transient fault occurs in the systems, an indication of the degree of the transient fault is stored and a possibility that the transient fault will change to a permanent fault is determined based on a time variation of the degree of the fault. If it is determined that the transient fault will change to a permanent fault, it is indicated to a man-machine system. In this manner, a loop transmission system which can be readily prediction-diagnosed for a fault is provided. In a second embodiment, means for calculating a feedback rate of a signal sent out to the transmission line and means for calculating the degree of fault on the transmission line based on the feedback rate calculated by the calculation means are provided.