LDP said eyeing pre-emptive injections for banks

Posted by Yuka as Japan

The Free
Democratic Party is planning to force the banks of all sizes for public
capital grants, an LDP legislator said Friday.

“We plan to
pave the way for a pre-emption of the capital mégabanques, depending on
the development,” said Hakuo Yanagisawa, chairman of the party in power
of the working group on how the response to the global financial
crisis.

Yanagisawa, a former Minister for Financial Services, the comments, how it was saved, for a television broadcast.

He was on a plan to create a crisis in the late 1990s, the Law capital
injection for the renewal of the banking system in Japan during the
“lost decade” for the small regional financial institutions.

Many industrialized countries have recently announced plans for
investment in its banks to end the crisis in financial markets, and
this May, the Working Group on the spectrum of banks eligible for
injections, the analysts said.

The plan is seen as a pillar of the promotion of government and LDP have worked on a response to the crisis.

Financial Services Minister Shoichi Nakagawa said the injection of public capital, sound banks in May be technically possible.

Yanagisawa has pointed out that the injections possible for an
unlimited number of banks should be laws to encourage lending to small
businesses and in order to avoid a deterioration of credit offers.

“One of the credit offers can be based on the real economy and must be prevented,” he said.