Hi TM, The script is intact. First this ...
nationalpost.com
and then this ...
nni.nikkei.co.jp
Tuesday, January 8, 2002
Local Govts Rethink Bank Deposits Ahead Of Guarantee Limit
TOKYO (Nikkei)--Local governments are reconsidering their bank deposits to cope with the April reinstallment of a 10 million yen upper limit on bank deposits guaranteed by the Deposit Insurance Corp.
To avoid losing public deposits in the event of a bank failure, local governments are considering canceling time deposits at banks, and increasing holdings in safer instruments, such as government bonds. They are also strengthening their monitoring of financial institutions.
The Shizuoka prefectural government will increase its bondholdings instead of offsetting the difference between deposits and private subscription bonds -- which are debt instruments for local governments -- in April, when the cap is imposed.
The prefecture's various funds now invest about 10% of their funds in bonds. The prefectural government aims to raise this percentage to as high as 50% and reduce the amount of money held in bank deposits. It will soon determine the type and maturity of bonds that it will purchase. It will also devise a standard for selecting healthy financial institutions in a bid to determine which bank deposits are safe.
The Oita prefectural government will reconsider its current investment choices and consider investing in low-risk instruments, like government bonds.
It now manages its roughly 92 billion yen in 27 different funds by placing them in certificates of deposits, time deposits and loan trusts at 13 financial institutions. It will continue to keep money at banks, but will also manage some funds in medium- to long-term government bonds.
It will strengthen the monitoring of financial institutions' health and reconsider deposits at unhealthy ones. To this end, it will either outsource the task or hire financial experts.
The government last June set up a committee to discuss how to cope with the deposit guarantee cap, and has already begun investing some of its money in government bonds.
The Kochi prefectural government plans to invest the total of 60 billion yen in 21 funds under a single management plan instead of managing them separately. It will also switch to investing in low-risk instruments like government bonds instead of time deposits and others.
The Mie prefectural government has also decided to diversify its investments. In addition to keeping some money in bank deposits, it will put some of its funds into bonds.
(The Nikkei Financial Daily Tuesday edition)
... followed by rising yields, ... screams ...
mips1.net
and Heinz's comments ...
mips1.net
and, finally, the cleaning crew ...
Message 16037875
Chugs, Jay |
