LDP proposes ‘super regional’ banks

Kyodo

The ruling Liberal Democratic Party proposed Monday that the government should encourage regional financial institutions to integrate into “super regional” banks that could help push economic growth, citing concerns about existing banks’ financial capacity and ability to support startup companies.

The proposed banks would operate beyond prefectural borders to strategically nurture companies. At present, banks tend to operate mainly within their home prefecture.

The proposal, titled “Japan Revitalization Vision,” was handed to Prime Minister Shinzo Abe by LDP Policy Research Council Chairwoman Sanae Takaichi.

It also contained a call for a reform of spouse tax deductions that would push more housewives into work.

The proposal said the spouse deduction should be the same for single- and double-income households. At present, the deduction is not available for double-income households unless the spouse’s income slips below a threshold.