As for the recent economic situation of the regional economy, the branch informed me that “it has been steadily picking up, led by the manufacturing industry, although there is still some lingering severity on the employment front.” This region has growth potential including “the integration of manufacturers with high technology,” “comparative advantage in being located close to Japan Sea rim countries that have been growing rapidly,” and “rich tourism resources.” Upon thoroughly utilizing the fund-provisioning scheme we newly introduced, I expect this region to fulfil its growth potential and expect you all to continue to strive for the development of the regional economy.
A regime that raised the real prospect of losses for shareholders and creditors would add a third alternative to the unattractive existing options of bailout or disorderly bankruptcy. The consequent increase in market discipline before severe financial distress arises could be a key advance in the containment of the too-big-to-fail problem.