EXCLUSIVE: Japan to Revise Lending Biz Law for 1st Time in 20 Yrs

Tokyo, April 8 (Jiji Press)–Japan’s Financial Services Agency is considering the first major revision of the money lending business law since December 2006, with a view to supporting corporate financing for growth-oriented investments and business acquisitions, Jiji Press learned Wednesday. The FSA plans to start discussions on the matter in the Financial System Council, which advises the prime minister, as early as this summer and submit a bill to revise the law as early as during next year’s ordinary Diet session, informed sources said. The bill is expected to strengthen protections for individual borrowers and also drastically revise regulations on loans, especially those to large companies, to give consideration to borrowers’ attributes and circumstances. For example, foreign financial institutions would no longer be required to have offices in Japan to participate in syndicated loans from Japanese megabanks and others to large companies. The possible law revision is expected to financially support the growth strategy of the administration of Prime Minister Sanae Takaichi. END [Copyright The Jiji Press, Ltd.]