A key government panel will discuss the impact on private financial institutions when it addresses the reform of government-affiliated financial bodies in September, economy chief Heizo Takenaka said Friday.
Under its structural economic reform plan, the government aims to create a financial system in which the private sector plays a bigger role than it does now, said Takenaka, minister in charge of economic and fiscal policy.
“Talks on how to make private financial institutions healthy are necessary,” Takenaka said. “I think that a policy framework to clarify the function of management (of financial institutions) is needed.”
The council plans to discuss in fall the reform of public financial institutions, which are often criticized for taking away business from the private sector.
Under the structural reform plan, most of the roles of public financial institutions would be transferred to the private sector.
However, to achieve that goal, an improved private financial sector is essential, Takenaka said.
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