Japanese Bankers Association

Chairman's Comments on Final Report of the "Study Group concerning Postal Services' Transformation to a Public Corporation"

Today, the Ministry of Public Management, Home Affairs, Posts and Telecommunications released the Final Report of the "Study Group concerning Postal Services' Transformation to a Public Corporation."Under the Law concerning the Postal Public Corporation of Japan enacted on July 24, the three postal services are to be run by the Postal Public Corporation of Japan from April 2003. The Corporation will continue with the present business forms intact and enjoying privileges of a government corporation including tax exemption and deposit guarantees.Thus, all the inherent problems of the system remain in force including the substantial and potential burden placed on taxpayers by the privileges, suppression of private sector business due to bloated funds of 240 trillion yen resulting from the government guarantee, and obstruction of the development of efficient financial and capital markets.We request here again that the Postal Savings limit its business to its original objective as long as it is run by the government, and that the size and scope of its business be contracted when the Corporation drafts a medium-term business plan of the Postal Public Corporation.On September 6, the Report of the "Committee to Discuss the Future of Three Postal Services" was released. In order to solve the structural problems of Postal Savings, we ask the government to prepare a schedule and steps for fundamental reform, including privatization of the three postal services. This process should consider the meaning of the Report and also that advocated by JBA and other private bodies.