The government does not intend at this time to consider a new framework for using public funds to help prop up the financial sector, Finance Minister Hiroshi Mitsuzuka said Wednesday.
He made the comment as the Tokyo Stock Exchange turned bearish, with market participants feeling that the government does not intend to ease the financial sector's woes with public money. The finance minister told reporters that while he is aware of calls to infuse public funds to bail out banks, authorities intend to stick to using existing legislation to handle financial failures.
He also noted that special loans by the Bank of Japan, which are currently being used to keep Hokkaido Takushoku Bank in business until its operations are transferred, are also a form of public funds.
Meanwhile, Seiichi Kato, acting chairman of the Japan Securities Dealers Association, said the Japanese stock market can stage a rally from its current weakness if the government issues a strong message about its readiness to reinforce the market in line with Japan's "Big Bang" financial deregulation.
Investors are unable to feel secure these days as the market is filled with negative factors that are stirring up a sense of anxiety, Kato said.
Kato, also chairman of Okasan Securities Co., made the comments following a plunge in Tokyo stock prices the same day.