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Strategies & Market Trends : World Outlook -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (973)	10/10/2002 7:19:47 PM
From: Don Green	Respond to of 48768

BOJ To Ask Govt Friday For OK To Buy Stocks Friday, October 11, 2002 TOKYO (Nikkei)--The Bank of Japan will on Friday ask the Ministry of Finance and the Financial Services Agency for approval to buy shares owned by commercial banks, The Nihon Keizai Shimbun learned Thursday. The MOF and the FSA are expected to grant approval as early as the same day, and the central bank intends to start making purchases this month, buying a total of about 2 trillion yen worth of shares over the next two years. Concluding that banks' considerable stockholdings are a major cause of anxiety about the stability of the financial system, the BOJ announced last month its plan to buy shares directly from major banks and some regional banks. But it is not legally allowed to purchase stocks, so it will apply Article 43 of the Bank of Japan Law, which lets the central bank engage in otherwise unauthorized practices if the prime minister and the finance minister approve. The BOJ was also considering setting up reserves equal to 40-45% of the shares it buys to hedge against possible price declines. But the central bank has abandoned the idea because doing so would reduce its profit and, consequently, its contribution to the state coffers. (The Nihon Keizai Shimbun Friday morning edition)