Noted Economist Ikeo Dies at 68

Economy Society

Tokyo, Feb. 23 (Jiji Press)--Noted economist Kazuhito Ikeo, who made valuable proposals as Japan combated its banking system crisis in the late 1990s, died of cancer at his Tokyo home Sunday. He was 68.

Ikeo, a native of the western city of Kyoto, gained a doctorate in economics at Kyoto University in 1987 before becoming professor at Keio University.

In the 1990s, he proposed Japanese "Big Bang" sweeping financial system reforms including drastic deregulation.

Ikeo was also one of the key proponents of public fund injections to recapitalize banks to help them write off bad loans that ballooned after a massive asset bubble collapsed in the early 1990s.

As the banking system crisis deepened, he publicized the concept of prompt corrective action, under which financial regulators order banks to improve their business as soon as their capital-to-asset ratios fall below acceptable levels.

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Jiji Press