At the same time, it is important for the financial side to encourage firms’ efforts in improving profitability, by setting lending standards that correspond to projects with low profitability. There are many small firms with high technological skills in Japan. Surveys on firms show that the smaller the size of business, the more firms that answer that their financial positions are weak.
If their technological skills are not fully used due to financial constraints, it will cause a significant loss for the overall economy, too. Therefore, I hope that financial institutions will make careful assessments and facilitate the smooth provision of funds to businesses and projects with prospects. BIS Review 21/2010  7  Of course, the authorities also play important roles.