Jun.24.2007

Japanese Bankers Association

JBA Submits Request for Improving JHFA’s Operations

JBA regularly submits requests to governmental organizations in conjunction with these organizations drafting their budget requests for the next fiscal year that they submit to the Ministry of Finance at the end of August.

The request concerning the Japan Housing Finance Agency (JHFA) was finalized at the Board of Directors’ Meeting on June 19 and submitted to JHFA President and the Minister of Land, Infrastructure and Transport on June 25.

JBA asked JHFA (1) to revise agency commissions paid to banks by the organization so that they reflect market mechanisms, and (2) to comply with Article 14 of the JHFA Law which stipulates that JHFA properly share its role with other private financial institutions, and respect opinions of concerned banks when changing business practices. This includes when it determines interest rates for “Flat 35” in line with repayment terms.