The government is likely to provide 33 percent of the funds for a proposed stock-buying body at the center of plans that will help banks divest themselves from the stock market, a senior official from the Liberal Democratic Party said Tuesday.
The plans also call for urging banks to unwind their cross-held shares within three years.
Cross-held shares are widely seen as artificially sustaining corporate share prices. Recent massive share sales by financial institutions have been blamed for the ongoing slide in Tokyo stock prices, and the government is seeking a way to keep banks afloat by unwinding their plummeting holdings without further injuring share prices.