The move by the Government to recapitalize banks is welcome, as is the proposal to reward bankers based on progress in cleaning up balance sheets and generating healthy growth. The innovative proposal to create a fund with majority private ownership and minority Government participation to lubricate the process of resolution could be very helpful.
In addition, according to the Bank's Tankan (Short-Term Economic Survey of Enterprises in Japan), the number of enterprises answering that the output prices have risen has been exceeding the number of those answering that such prices have fallen for the first time in a while.