Moving on Prime Minister Ryutaro Hashimoto's orders, the Liberal Democratic Party has begun a wild scramble to devise measures, including possible infusion of public money, to drive away fears of financial instability.
These confidence-boosting steps are to be included in the LDP's third round of economic stimulus measures expected around Dec. 10, as doubts over banks' creditworthiness and increasingly cautious lending are seen as key factors behind the sagging economy.
Finance Minister Hiroshi Mitsuzuka implied that the ministry would not rule out the use of public money to repair the financial sector's damaged reputation, but he stressed that more debate is needed. "I intend to keep an eye on the debate both in the Diet and the general public -- I strongly hope this issue is debated," he told a news conference Friday.