The nation's 19 major banks should receive capital injections not one at a time but all at once to maximize the move after a bank recapitalization bill designed to reinforce their capital bases is enacted, Bank of Japan Gov. Masaru Hayami said Thursday.With the injection of public funds, clear-cut disclosure of their treasuries and far-reaching structural reforms, these banks will be able to regain market and public confidence, Hayami said.At a news conference Thursday, the BOJ governor voiced concern over recent public criticism of financial institutions in general, which paints major banks to be the villains who caused the current financial mess. "During the seven years since the collapse of the bubble economy, deflation in the worth of bank assets has proceeded considerably," he said. "In such a situation, it would be too much to accuse the management of these banks alone."Instead, Hayami stressed that the responsibility of top management at banks is to disclose their treasury, implement corporate restructuring immediately and decide future courses as the government's financial deregulation goes full scale.Injection of public funds should be employed if these conditions are met, so that the government can avert the same consequences of the previous capital injection in March, which failed to replenish banks' capital bases, he added. "Bringing the responsibility issue first may slow down the positive steps the banks are expected to consider and instead lead to further deterioration of their credit crunch," he said.On the recent economic and financial conditions, Hayami referred to the BOJ's monthly report released earlier in the day and reiterated that fast economic recovery is unlikely.Regarding the BOJ's Policy Board meeting Tuesday, Hayami said many members called for additional monetary measures other than interest rate cuts.
