Japan to Ease Rules for Injecting Public Funds into Banks

Politics

Tokyo, May 26 (Jiji Press)--Japan's Financial Services Agency plans to relax requirements for injecting public money into banks in a bid to help them support businesses hit by the fallout from the coronavirus crisis, informed sources said Tuesday.

The agency aims to support the finances of banks to ensure stability in the financial system, the sources said.

Specifically, banks would not be asked to clarify management responsibility or set financial targets when they seek injections of public funds.

The FSA is also considering extending the deadline, currently set for March 2022, for banks to seek public money injections by four years, the sources said.

The agency plans to submit legislation to revise the financial function strengthening law, which provides the basis for public money injections into banks, during the ongoing parliament session, set to end in June.

[Copyright The Jiji Press, Ltd.]

Jiji Press