4 January 2002, 09:42 Japan govt to inject more funds into banks in event of financial crisis
TOKYO (AFX-ASIA) - The government will consider injecting further
public funds into banks and extending a blanket guarantee on bank
deposits if there is a financial crisis, Minister for Economic and
Fiscal Policy Heizo Takenaka told the Nihon Keizai Shimbun.
"If there was a situation where financial institutions were failing
one after another, of course, we'd have to consider measures like
that," he said.
However, Takenaka said the current economic condition does not
warrant such "emergency" measures.
"If you ask me if conditions are ripe for such a scenario, I think
that is too big a leap," he said.
It has been reported that the government is planning to cap its
guarantee on individuals' bank time deposits to 10 mln yen from April
1, although demand deposit guarantees will continue for another year.
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