Top opposition leader Naoto Kan hinted Wednesday that his Democratic Party of Japan may accept the planned injection of public money for the ailing Long-Term Credit Bank of Japan under certain conditions, such as full disclosure of the bank’s management information and clarification of the responsibility of its executives.

The DPJ, the largest opposition party, may have to make “important decisions” regarding the LTCB issue separate from the Diet debate on a set of government-proposed financial stabilization bills, Kan told the party’s executive meeting.

It was taken as an indication that the DPJ’s stance on the issue was softening.

Kan later told reporters that if proper rules, such as sweeping information disclosure and the taking of managerial responsibility at LTCB, are in place, the DPJ would be willing to separate the issue from the ongoing Diet debate.

Meanwhile, during Wednesday’s deliberations, Finance Minister Kiichi Miyazawa hinted that the LTCB may be able to obtain public funds before financial authorities complete their inspection of the bank.

During the day’s session of a Lower House committee, Miyazawa indicated that the injection of public funds into a bank and ongoing inspections by the Financial Supervisory Agency are two separate issues.

FSA Commissioner Masaharu Hino also told the Diet panel that the FSA is not conducting the inspections specifically for use by a government panel that screens banks’ applications for public funds. But he added that his agency will try to finish its ongoing inspection of the LTCB before the panel decides on the use of public money.

Miyazawa and Hino serve on the seven-member screening panel, which is under the Deposit Insurance Corp. and has the authority to decide whether to inject capital into applicant banks.

Their remarks came in response to urging by Katsuya Okada, a DPJ legislator at the Lower House special committee on financial stabilization, to promise not to use public money for the LTCB before the inspection is finished.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.