Chief Cabinet Secretary Yasuo Fukuda said Thursday the government is studying "every possible step" that would help banks accelerate bad-loan disposal -- an indication the government is thinking of injecting them with a fresh tranche of public funds to avert a potential crisis.

"We are taking everything into consideration," the top government spokesman said.

Fukuda said the Financial Services Agency is preparing steps to fulfill Prime Minister Junichiro Koizumi's vow to accelerate the disposal of problem loans, adding that more concrete measures will be announced in October.