The head of the Japanese Bankers Association indicated Tuesday that Resolution and Collection Corp., the government's debt collector, should purchase bank loans at above-market prices.
Masashi Teranishi, who is also president of UFJ Holdings Inc., was supporting a politically loaded proposal that would see more public money risked in an effort to help the nation's debt-ridden banks.
"It is desirable" to purchase debt at prices set by subtracting the amount of loan-loss reserves set aside by the bank from the loan's book value, Teranishi said.