Japan will liberalize bank lending rules to finance high-market growth plans

THE GOVERNMENT OF JAPAN ANNOUNCED THAT IT WOULD LIBERALIZE BANK LENDING RULES IN SUPPORT OF PRIME MINISTER GAO CITY ' S EARLY-MORROW GROWTH PLAN. THE NEW POLICY INCLUDES EASING BANK LENDING RESTRICTIONS ON MERGERS AND ACQUISITIONS AND ENCOURAGING PENSION FUNDS TO INCREASE INVESTMENT IN ALTERNATIVE ASSETS. BANKS WILL BE ALLOWED TO EXCEED EXISTING LOAN CEILINGS WHEN FINANCING PROJECTS SUCH AS LARGE-SCALE M & AS AND THE AI DATA CENTRE. IN ADDITION, THE GOVERNMENT WILL SIMPLIFY THE PROCESS OF BANK-OWNED INVESTMENT COMPANIES PROVIDING EQUITY FINANCING FOR ACQUISITIONS AND BUSINESS BREAK-UPS AND REVIEW THE “FIREWALL” PROVISIONS THAT PROHIBIT COMMERCIAL BANKS WITHIN THE SAME FINANCIAL GROUP FROM SHARING CUSTOMER INFORMATION WITH THE SECURITIES SECTOR。