Japan Panel Starts Talks to Revise Money Lending Biz Law

Tokyo, Sept. 16 (Jiji Press)--A Japanese government panel began discussions Wednesday to revise the money lending business law to make it easier for foreign financial institutions to meet financing needs that cannot be met solely by Japanese banks.

The Financial System Council, which advises the prime minister, held the first meeting of a working group to consider what would be the first revision of the law in roughly 20 years. The Financial Services Agency presented at the meeting a list of issues that should be discussed to ease requirements for foreign banks to participate in syndicated loans organized in Japan.

The proposed revision is aimed at increasing entities providing growth financing, including for large-scale mergers and acquisitions. Regulations currently applying in a largely uniform way to loans for both corporate and retail clients will be made more flexible based on the characteristics of borrowers and other circumstances.

The working group plans to consider the proposed change with an eye to submitting a bill to revise the law to next year's ordinary session of the Diet, Japan's parliament.

Under the current law, foreign financial institutions that do not hold a banking license in Japan must establish a business base in the country to participate in syndicated loans.

[Copyright The Jiji Press, Ltd.]