« 赤とんぼ珍種発見 | トップページ | 小沢民主党 »

2008年9月21日 (日)


(Sep. 21, 2008) The Yomiuri Shimbun

Public financing giant needs to trim down

政府系金融再編 「メガ公庫」のスリム化進めよ(921日付・読売社説)

The reorganization of eight government-affiliated financial institutions, which was prescribed in the structural reform policies of the administration of former Prime Minister Junichiro Koizumi, will begin in October.


The reorganization is aimed at streamlining public financing, which is characterized by wasteful use of funds, and at entrusting to the private sector business fields it can look after. To enable the fruit of structural reforms to be harvested, efficiency should be further boosted after the reorganization.


Three government financial entities, including the National Life Finance Corporation, and the Japan Bank for International Cooperation's international financial unit will be integrated to create the Japan Finance Corporation (JFC). The government-affiliated financial institutions will be fully unified when the Okinawa Development Finance Corporation is subsumed within the JFC sometime after fiscal 2012.


The Development Bank of Japan and Shoko Chukin Bank will become government-funded companies. The two companies will be totally privatized between five and seven years from now.

The operations of Japan Finance Corporation for Municipal Enterprises will be transferred to an organization jointly funded by municipalities.



JFC must assist public sector

With the revamping of the three financial institutions, including the Development Bank of Japan, the government's target of halving the balance of outstanding loans by government-affiliated financial institutions will be achieved. But this is not enough.


First of all, it is indispensable to streamline the JFC, which will have 25 trillion yen of outstanding loans--an amount equivalent to those held by Resona Holdings, Inc. For commercial banks targeting the same clients as the JFC--small and midsize companies--the massive government-affiliated financial institution will become a rival to be reckoned with.


The JFC should not steal the best clients from private banks. It should focus on business fields that only public financing can undertake, including offering loans to small and midsize companies hit by the credit crunch. It should devote its energies to complementing the public sector.


Public financing will be put to the test at a time when the nation is grappling with a financial crisis and the threat of a recession looms. The government must prepare a system to supply a smooth flow of funds to businesses in need.


As a matter of course, the fact that the JFC will play such a role should not be used as an excuse to preserve the organization's structure intact.



Do away with sectionalism

Although the number of executives will be reduced from the current 43 in the former four organizations, the JFC will still have 27 executives. This is a transparent bid by the supervisory authorities to create plum jobs into which they can parachute retiring government officials. The quota should be pared further.


While the number of JFC branches, at 152, will be two-thirds of the total of 233 of those of its predecessors, the number of workers will be trimmed just 5 percent from the about 8,000 staff now working for the predecessors. This problem results from the fact that the structures of each of the predecessor entities will be preserved after the reorganization.


To make the reorganization effective, it is vital to do away with sectionalism and reduce the number of staff substantially by setting a numerical target.


An assessment committee should be appointed to oversee the JFC to prevent cronyism.


Meanwhile, after being privatized, the Development Bank of Japan and Shoko Chukin Bank will find themselves in a more severe business environment, in which they will have to bear the higher costs needed to raise funds, as they do not have an "unspoken guarantee from the government."


In the process of becoming independent, it is imperative for the two organizations to make such management efforts as a thorough restructuring and development of highly profitable businesses.


(From The Yomiuri Shimbun, Sept. 21, 2008)

20089210154  読売新聞)


« 赤とんぼ珍種発見 | トップページ | 小沢民主党 »





« 赤とんぼ珍種発見 | トップページ | 小沢民主党 »