Jul.29.2004

Japanese Bankers Association

JBA Releases "Our Views on Privatization of Postal Services"

JBA released "Our Views on Privatization of Postal Services-Clarifying JBA Proposals" on July 29.JBA previously issued a proposal titled "Privatization of Postal Services and the Future of Postal Savings" in February 2004.The government deliberation on privatization of Japan Post has shifted to more specific issues. The new pamphlet explains JBA's views in detail and responds to comments made to JBA proposals in the past. The pamphlet also takes into consideration positions stipulated in the "Summary of Issues regarding the Privatization of Postal Services" published by the Council on Economic and Fiscal Policy.Specifically, the pamphlet explains in detail on three important issues in the section titled, "The Ideal Post Privatization Form of Postal Savings." The issues are: (1) problems involved in privatizing Postal Savings with its mammoth size intact, (2) how to operate the Postal Savings business during "preparation" and "transition," and (3) appropriately blocking risks between the three businesses.The pamphlet responds to comments raised concerning previous JBA proposals in the section, "JBA Responds." The two main issues addressed are: (1) feasibility of the Post Bank's business model and (2) effects of privatization on the government bond market.