The decision by Prime Minister Yukio Hatoyama and his Cabinet to roll back postal privatization has infuriated private financial institutions that assume there won't be a level playing field if the government keeps its stake in Japan Post's savings and insurance units.
The government decided March 30 to revise the postal reform plan initiated by Junichiro Koizumi, who as prime minister championed structural reform toward a more market-oriented economy.
Under the new plan, based on a proposal by postal reform minister Shizuka Kamei, the maximum amount of postal savings per person that Japan Post Bank can accept will be doubled to ¥20 million. The plan also raises the maximum "kampo" postal insurance payout to ¥25 million from ¥13 million.