Financial Services Minister Heizo Takenaka said Friday he hopes to specify the government’s approach to changing accounting rules for calculating major banks’ capital in a timetable to be drawn up in November.
The timetable focuses on the implementation of new bank rules unveiled Wednesday.
“We need to specify how we are considering making changes in the rules,” Takenaka said during a regularly scheduled news conference.
Takenaka initially sought to limit deferred tax assets that a bank can count as core capital to within 10 percent of its capital. But he failed to specify the limit in a report on the new bank rules due to strong opposition from the governing Liberal Democratic Party and major banks.
The program says only that the upper limit for such assets “will be examined promptly.”
Takenaka has also reiterated that the new rules will only be applied to major banks, including trust banks.
The government plans to introduce another set of rules for regional banks by the end of the current fiscal year.
Lobby seeks resolve
SENDAI (Kyodo) The government must implement with resolve its new package of proposals to fight deflation, Hiroshi Okuda, chairman of the Japan Business Federation (Nippon Keidanren), said Friday.
Okuda described the package itself as “just an outline.”
“The important issue here is giving body and substance to the measures,” he said.
He was in Sendai to attend a business forum.
In a bid to end Japan’s chronic economic malaise, the government announced a new economic package Wednesday containing measures to reform the banking sector and fight lingering deflation.
Okuda pointed out that the foreign media do not seem too impressed by what they view as a watered-down version of the original plans sought by Financial Services Minister Heizo Takenaka, particularly in regard to mending the troubled banking sector.
“They probably want to see drastic surgery, but Japan chose a soft landing,” Okuda said. “The important thing now is to steadily carry out the measures.”
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