The Diet enacted a revised law Wednesday to inject public funds into financial institutions affected by the March 11 earthquake and tsunami, as well as legislation to extend or enhance some tax breaks for fiscal 2011, including levies on smaller companies.

By relaxing some rules for injecting public money, the government aims to encourage banks and other commercial lenders in the devastated northeastern region to protect depositors and financially support small and medium-size firms struggling to keep their businesses going.

Unlike the current law, the revision allows those lenders to obtain taxpayer money without going through a strict screening process by authorities or being required to draw up plans to revamp management in exchange for public assistance.