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(From Journal of Japanese Trade & Industry (JJTI))
The Financial Services Agency has drawn up "the Program for Further Financial Reform" to serve as a guideline for Japan's financial policy after the government completely removes the full deposit guarantee at the end of March. The new program, "Japan's challenge: Moving toward a Financial Services Nation," calls for, among other things, establishing new legal frameworks to help create financial conglomerates that operate across several different financial sectors such as banking, securities and insurance. Japan is now poised to follow the trend of financial realignment that is continuing in the United States and Europe in a bid to bolster the international competitiveness of its financial sector.
Japan has been hard-pressed to clear away non-performing loans (NPLs) and the government introduced a financial revitalization program when Takenaka Heizo served as the financial services minister. The program called for halving the ratio of bad loans to total lending at major commercial banks by the end of ...