26 February 2002, 09:27 Yanagisawa not ruling out pre-emptive public-fund injection into banks
TOKYO (AFX-ASIA) - Minister of Financial Affairs Hakuo Yanagisawa
said he cannot rule out the possibility of the need to inject public
funds into banks as a pre-emptive measure to prevent a financial
crisis.
"I don't think it is impossible that the government will inject
public funds in a pre-emptive way because the existing law stipulates
the government inject funds if there are signs of a financial crisis,"
he said.
"Therefore, pre-emptive action is possible," he told a
parliamentary Lower House budget committee.
Yanagisawa heads the Financial Services Agency, the banking
regulator, which is carrying out special inspections into banks'
financial condition.
Investors are concerned the probes will reveal banks are
weakly-capitalised.
Yanagisawa has remained resistant to public fund injections.
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