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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