LDP looks to tap dormant accounts

JIJI

The Liberal Democratic Party and its ally, New Komeito, are considering tapping into bank deposits that have been left untouched for more than a decade to pay social security and public works costs, officials said.

The use of deposits at so-called dormant bank accounts had been studied under the previous administration, led by the Democratic Party of Japan, but the move was halted after the DPJ lost power in the December 2012 general election.

The ruling bloc aims to form a suprapartisan group of lawmakers as early as February to submit related legislation.

A plan drafted by LDP ranks calls for transferring such deposits to Deposit Insurance Corp. of Japan and using the funds to provide subsidies and loans for nonprofit projects through a new body.

The draft also includes steps to allow depositors to withdraw their deposits even after their bank accounts are deemed dormant.

Available dormant account deposits are estimated to total up to ¥850 billion in a decade.