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Hiroshi Okuda, chairman of the Japan Business Federation (Nippon Keidanren), said Monday he may tolerate a cut in the guaranteed yields offered by life insurers to their policyholders.

“We should devise a system in which life insurers can cut (guaranteed yields) voluntarily,” Okuda told a news conference.

He made the remarks following reports that the Financial Services Agency may submit a bill to the Diet that would allow troubled life insurers to cut their guaranteed yields before they go under.

Even if such a system is introduced, the decision to cut guaranteed yields should be made by individual life insurers and not by the government, Okuda said.

“The government should not intervene in the matter,” he stated.

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