In this regard, bills related to financial revitalization have been legislated, and a bill related to bank recapitalization, including policy measures to strengthen banks’ capital base through injecting public funds, has passed the House of Representatives of the Diet. It is desirable that functions of and confidence in Japan’s financial system be restored based on these schemes.
Furthermore, the government is devising plans for economic recovery, including reduction in personal income taxes and corporate taxes as well as additional public investment. It is important to materialize these measures promptly, in such a way that they not only have sizable direct effects on the economy but also contribute to restore corporate and household confidence.