EXCLUSIVE: LDP to Urge Local Lenders to Expand Advisory Services

Tokyo, May 13 (Jiji Press)–Japan’s ruling Liberal Democratic Party will urge regional banks and other local financial institutes to expand their investment banking services, such as providing advice on mergers and acquisitions, Jiji Press learned Wednesday. The call was included in recommendations drafted by the party’s Research Commission on the Finance and Banking System. The party will formally adopt the recommendations as early as next week, hoping that they will be reflected in the government’s new strategy for the financial sector. According to the draft, the LDP will emphasize that investment banking services are crucial to the growth of companies leading regional economies. It will urge the government to encourage major regional banks to include efforts to bolster these services in their medium-term business plans. The party will request that the Financial Services Agency ease investment and lending regulations for banks. It will also call on the Small and Medium Enterprise Agency and the FSA to cooperate to formulate a financial action plan for each prefecture. END [Copyright The Jiji Press, Ltd.]