The ruling Liberal Democratic Party submitted to the opposition camp Friday its second series of compromise proposals for financial stabilization bills, accepting the creation of an independent body to handle bank failures.

But opposition parties rejected the latest concessions, with a senior official of the Democratic Party of Japan calling them inappropriate.

The body, dubbed the Financial Resuscitation Committee, would be placed under a state minister in charge of financial affairs and facilitate the controlled liquidation of failed banks.

The idea, however, fell short of the opposition camp’s demand that the Finance Ministry completely relinquish administration of the nation’s financial systems.

Under the LDP’s latest proposal, the Finance Ministry would still retain the authority to dictate policy to the banking sector.

The LDP also offered to consider revising two financial-system stabilization laws that allow the injection of public funds into weak but solvent banks to help shore up their capital bases.

Yet all the opposition parties — except the Social Democratic Party — have been demanding the abolition, not a revision, of the two laws.

A senior LDP official told reporters that his party has made the maximum compromise in preparing the latest set of proposals.

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.