26 June 2001, 10:26  JAPAN GOVT PANEL PROPOSES LIMITING BANKS' SHAREHOLDINGS TO WITHIN 100 PCT OF CAPITAL

TOKYO, June 26 - Japanese banks should be banned from owning shares that exceed their capital so as to reduce their exposure to stock market volatility, a government panel said on Tuesday.
The widely expected recommendation came in a report by a Financial Services Agency panel on how to limit banks' shareholdings.
The report called for the proposal to take effect in 2004, but added the deadline could be extended by one to two years in specific circumstances. It did not elaborate further.
The rule would apply to major financial institutions including city banks, trust banks, long-term credit banks, Norinchukin Bank and Shinkin Central Bank, the report said.
The government had been proposing a curb on such shareholdings since a steep fall in Tokyo share prices earlier this year raised concerns about potentially huge losses at banks.

© 1999-2024 Forex EuroClub
All rights reserved