TOKYO (AFX-ASIA) - Minister of Financial Affairs Hakuo Yanagisawa said an unconsidered capital injection into major banks will weaken momentum for reform at the banks and at indebted companies. "If the government injects public funds into banks with easy consideration, it will put a brake on momentum for reforms at banks and indebted companies," he told the parliamentary Lower House economic and fiscal policy committee. "Public funds should be injected only ahead of an imminent financial crisis and where the government feels it is necessary to prevent a crisis," he said. "It is also difficult to urge banks to build up their loan-loss reserves pre-emptively under current accounting rules, which require a clear need for such action," he added. "An increase in loan-loss reserves also conflicts with the interests of bank shareholders," Yanagisawa said. A build up in reserves reduces earnings.