• Kyodo

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The Liberal Democratic Party on Friday endorsed a proposal by a party panel to raise a limit on deposits at state-backed Japan Post Bank to ¥30 million per person from ¥10 million at present, party officials said.

The party’s decision-making General Council approved the proposal so as to help out residents in areas where Japan Post Bank is the only banking service available, such as some rural areas.

It calls for raising the upper limit of deposits at Japan Post Bank to ¥20 million by the end of September and ¥30 million two years from now. It also calls for the cap’s abolition in the near future.

The recommendation also says that a limit on insurance at Japan Post Insurance Co. should be raised from ¥13 million at present to ¥20 million by the end of September.

The banking and financial arms of Japan Post Holdings Co. provide their respective services through a nationwide network of post offices.

The LDP plans to convey the proposal to government ministries and agencies to seek a revision of ordinances to realize the recommendation, the officials said.

The government will look into what impact the proposal may have on local banks, the officials said.

The proposal was worked out by a party panel led by LDP acting secretary general and House of Representatives member Hiroyuki Hosoda earlier this week.

The holding company and the two arms are expected to simultaneously go public by listing their stocks on the Tokyo Stock Exchange in October, entering a final phase of Japan’s postal system privatization launched under a law enacted in 2005.