At the Next Cabinet meeting held on October 15, Monetary Measures Action
Team Head Leader Kohei Otsuka reported the Party窶冱 plan in response to the
financial crisis. The Cabinet approved the plan, and its contents are as
follows:
Provisional Translation
Financial Crisis Countermeasure Proposals
(Summary)
October 15, 2008
Monetary Measures Action Team
The Democratic Party of Japan
The Democratic Party of Japan proposes the following measures and urges the authorities concerned to take proper actions to cope with the situation brought about by the current financial crisis, including a liquidity shortage in the financial markets, credit contraction in corporate finance, and risk of Japan窶冱 economy tumbling into a full-scale recession. |
1. Measures to address a Liquidity Shortage (to support financial institutions) |
????/strong> Liquidity provision by the Bank of Japan
????/strong> Reserve requirement ratio of the Bank of Japan
????/strong> Monetary policy
????/strong> Eligible collateral with the Bank of Japan
????/strong> Effective use of the special account for foreign exchange funds |
2. Measures to address Credit Contraction (to support firms) |
????/strong> Expansion of public financing
????/strong> Crisis response operations by the Japan Finance Corporation
????/strong> Enhance effectiveness of financial inspections
????/strong> Foreign currency supply framework for Japanese companies |
3. Measures to address Financial System Problems (to support insurance policyholders, depositors, and investors) |
????/strong> Public support for the Life Insurance Policyholders Protection Corporation of Japan
????/strong> The Act on Strengthening Financial Functions
????/strong> Public support for investor protection fund system
????/strong> Deposit protection and measures to counteract the loss of investment trust principal |
4. Measures to address securities market problems etc. |
????/strong> Reinforcement of short selling restriction
????/strong> Continuation of the preferential tax system for securities
????/strong> Improvement in the tax system |
5. Other (including requests to the authorities concerned) |
????/strong> Strengthening surveillance of domestic financial institutions窶 activities.
????/strong> Strengthening surveillance of global money flows
????/strong> Report developments toward the introduction of international accounting standards
????/strong> Strengthening surveillance of international speculative funds |
