In the run-up to the crisis, as I’m sure you all know, decades of relative stability in the United States had left both the financial industry and government agencies complacent about potential threats.
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.