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The leader of the nation’s top banking association welcomed on Tuesday the government’s intention to use public funds for future financial crises, describing the plan as a “safety valve” for contingencies that fall beyond the capacity of the existing system tasked with dealing with such problems.

Naotaka Saeki, chairman of the Federation of Bankers Associations of Japan, expressed support for the idea of offering government guarantees to Bank of Japan loans made to the Deposit Insurance Corp. The DIC, financed mainly by banks and credit associations, helps pay out deposits and offers aid to financial institutions that assume the operations of a failed bank.

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