Japanese Bankers Association

JBA's View on Fundamental Reforms of Postal Savings

On November 14, JBA released a proposal titled "Our View on Fundamental Reforms of Postal Savings---Responding to the Report of the Committee to Discuss the Future of Three Postal Services". The report of the government's committee was publicized earlier on September 6.In the Proposal, JBA analyzes the problems posed by the Postal Savings from three aspects, based on the past JBA's opinions on this issue. These aspects are (1) deviation from the original objective, (2) burdens on taxpayers, and (3) hindrance to the development of the money/capital markets and vitalizing of the economy. And the Proposal concludes that the government-run Postal Savings no longer have its raison d'etre.As for the Postal Savings in the form of a public corporation to be started in April next year, the Proposal points out that the merits given to the governmental business remains intact, leaving the problems unsolved. The Proposal also maintains that the Postal Savings be either abolished or privatized after preparing a level playing field vis-a-vis private financial institutions, within five years in tandem with the reforms of the public finance and special public corporations.Concerning the process for the abolishment or the privatization and possible methods for separating the three postal services or splitting by regions, the Proposal describes more specifically than the past JBA opinions.