On October 22, JBA submitted the “Opinion on Deliberation at the Postal Services Privatization Committee on the Japan Post Bank’s Liberalization of Fund Operations” to the Postal Services Privatization Committee.
In the Opinion, JBA maintains that achievement of entity-wide efficient management and overhauling of the internal control system in a manner befitting a private entity are essential preconditions for the Japan Post Bank to enter new businesses. The Committee must also deliberate each new business entry by the Japan Post Bank with a focus on whether or not fair competition is ensured so that private institutions may not be suppressed unfairly and the new business entry doesn’t result in re-expansion of the Bank’s business scale.
Specifically, the Opinion addressed interest-related derivative transactions for risk hedge purposes, by stating that a new entry by the Japan Post Bank may be allowed on the condition that sufficient preparatory work be done and the Committee be allowed to deliberate thoroughly. As for syndicated loans (participation type), JBA opposes the Japan Post Bank’s entry prior to complete privatization.