Japan Passes Bill to Spur Regional Bank Realignments

Politics Economy

Tokyo, May 19 (Jiji Press)--The Diet, Japan's parliament, approved on Wednesday a bill to establish a grant program to spur business integration, including mergers, among regional financial institutions.

The bill to revise the law on strengthening financial functions passed the House of Councillors, the upper chamber of the Diet, at a plenary meeting. The House of Representatives, the lower chamber, gave its approval last month.

Also enacted were a revision to the banking law to ease restrictions on the scope of bank's business and equity investments and an amendment to the financial instruments and exchange law to promote the entry of overseas investment funds into the Japanese market.

The government hopes that strengthening financial functions will give a boost to the country's economy, battered by the novel coronavirus crisis and depopulation.

Under the grant program, the government will pay some 3 billion to cover about one-third of initial costs related to business integration, including system and branch consolidations.

[Copyright The Jiji Press, Ltd.]

Jiji Press