Prime Minister Junichiro Koizumi indicated Thursday he will instruct his Cabinet ministers to step up measures to stabilize the financial system and reassure bankers before the imposition of a cap on all bank deposit guarantees in April.
The order could come at a Cabinet meeting Friday, government sources said.
Koizumi minister is expected to order a legal revision to allow the use of public funds to encourage mergers between banks, particularly midsize and smaller lenders, the sources said.