TOKYO, Jan 7 (Reuters) - The government is looking at a plan
to inject public funds into 40 or more regional banks, whose
capital bases are being hurt by rising bad loans amid the
financial crisis, the Mainichi newspaper reported on Wednesday.
Seeking to address worries about the financial system and
ease a credit crunch, the government aims to boost the capital
adequacy ratio of the banks to around 8 percent from as low as 4
percent, the paper said.
The government plans to inject the funds at the end of the
business year which ends in March, it said.
The Financial Services Agency estimates that the plan is
feasible within an existing public fund framework of about 2
trillion yen ($21.4 billion) which would easily allow an
injection of 10 billion yen into each bank, the Mainichi said.
(Reporting by Yumiko Nishitani; Editing by Edwina Gibbs)
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