The government's panel on privatization of the postal services is considering allowing Japan Post Bank to offer housing loans, according to sources.
Commercial banks and other private businesses are wary about the postal bank's entry into the mortgage loan business and other financial services as borrowers and customers may view the lender as having "tacit" backing of the government, giving it an unfair advantage.
Japan Post Bank is a unit of Japan Post Holdings Co., which is owned entirely by the state.