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The Financial Services Agency has set up an in-house project team to study a proposed system for injections of public funds into banks, Financial Services Minister Heizo Takenaka said Tuesday.

The team, made up of more than 10 senior FSA officials, will hold its first meeting this week, Takenaka told reporters after a Cabinet meeting.

Takenaka said the team will study what the FSA can do as a financial administrator after receiving various opinions and suggestions from the Financial System Council about the proposed system, as part of efforts to ensure financial system stability.

In late July, the council, which advises Prime Minister Junichiro Koizumi, presented a framework that includes a requirement that financial institutions set numerical targets for such things as profits when they receive public funds.

But it failed to decide on specifics of the proposed system or recommend when it should be introduced as a law, saying that was a matter for the administration.