TOKYO (Nikkei)--Japanese Finance Minister Kaoru Yosano on
Saturday asked leaders of industry groups that represent megabanks
and regional banks to make requests for injections of public funds,
the Nikkei reported in its Saturday evening edition.
This is the first time that Yosano has asked such major banks to
accept the injections, which are available under new legislation
designed to facilitate lending.
"We would like the core (of the banking industry) to strengthen
its capital base," said Yosano while discussing the program and
such measures as the Bank of Japan's purchasing of subordinated
bonds issued by banks.
Yosano, who also serves as financial-services minister and
minister for economic and fiscal policy, made the request to the
heads of the Japanese Bankers Association, the Regional Banks
Association of Japan and the National Association of Shinkin Banks
during their meeting at the prime minister's office.
In response, Seiji Sugiyama, chairman of the Japanese Bankers
Association and president of Mizuho Bank Ltd., expressed the
industry's reluctance to request such injections by saying, "We
would like to procure (funds) independently as much as
possible."
The leaders of the other two organizations indicated similar
views.
However, Sugiyama did not reject such injections outright,
noting that banking operations "would be quite difficult if the
Nikkei average were to fall below 5,000."