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To: Giraffe who wrote (26027)	1/12/1999 3:53:00 PM
From: Alex	Respond to of 116900

Wishful thinking in Japan ?????????? Wednesday, January 13, 1999 Finance Reformers Want Hopeless Banks Out Of Market TOKYO (Nikkei)--The recently formed Financial Reconstruction Commission will insist that banks unable to survive on their own leave the market, in order to quickly restore domestic and foreign confidence in Japan's financial system. That was the message in a basic policy approved by commission members Tuesday. The policy clarifies aims of jump-starting the economy by making financial companies more efficient, and defining the goals of bank recapitalization and financial rehabilitation to paint a picture of Japan's financial industry in the 21st century. After reviewing the current situation, the policy points out that the failure of financial institutions to dispose of nonperforming loans invites a continued credit crunch. Recognizing the need for recapitalization to hasten write-offs of bad lending, the policy demands strict reserve standards and audits of banks be implemented first. Further, it insists on eliminating banks deemed hopeless. Regarding financial rehabilitation legislation to liquidate insolvent lenders while protecting sound borrowers, the policy emphasizes the need for transparency in the liquidation process and an end to back-room administration. (The Nihon Keizai Shimbun Wednesday morning edition) nni.nikkei.co.jp