Financial Sector

September 2001

Economic and Fiscal Policy Minister, Heizo Takenaka, said that a key government panel will discuss whether assessments by the Financial Services Agency (FSA) of the health of bank loans are stringent enough,.  Takenaka questioned the effectiveness of the FSA’s methods after it failed to identify problem loans to failed supermarket operator Mycal Co. - there was a disparity between the FSA's assessment and the market's view.  Hakuo Yanagisawa, FSA Minister said that the agency's inspection policy would be reviewed to enable the FSA to conduct special inspections of banks with loans to debtors whose market valuations have fallen rapidly.  The government's structural reform schedule notes that the FSA is to conduct special audits of major banks, beginning this fiscal year. (September 30, Nihon Keizai Shimbun)

The Financial Services Agency (FSA) will require, from November, brokerages and banks to clearly explain the differences between different investment trusts when they solicit holders of one trust to switch to another. The move is intended to discourage brokerages/banks from pushing clients to change trusts trying to generate commissions.  Some financial institutions, which are overly keen to secure fees, have tried to persuade customers to switch to another investment, although there is little difference between the funds.  The agency believes that such a practice may cause individual investors to lose faith in brokerages and the stock market.  The new rules will call for sales people to explicitly explain in writing or another method the important features of each investment trust, allowing the individual customers to make an informed decision on whether to switch funds.  Violators will be subject to administrative penalties and their names will be published on the Internet.  (September 30, Nihon Keizai Shimbun)

Special examinations being introduced by the Financial Services Agency are aimed at pushing banks to bolster loss set-asides against large ailing borrowers before they collapse.  The FSA wants banks to divide corporate borrowers, who are now lumped into the catchall "requires attention" category, into discrete subgroups and to set varying levels of loss reserves based on the actual degree of risk in each category.  The agency will allow individual institutions to determine how to best subdivide the companies ranked as "requiring attention," but will offer a set of guidelines on how to proceed, including dividing borrowers by industry, region, loan amount and company size.  The nation's major banks, on average, have loss reserves covering only about 4% of loans pegged as "requiring attention." However, banks are expected to raise their reserve coverage ratios to as high as nearly 15% for certain risky subgroups, such as large general contractors or large retailers. The special examinations, to be conducted on a semiannual basis, are expected to focus on loss reserves against several dozen companies against which market signals, such as stock prices and credit ratings, serve as danger signs. However, some banking executives say privately that FSA examiners are unlikely to be so tough that new injections of public funds will become necessary to shore up banks' capital bases. (September 29, Nihon Keizai Shimbun)  

The Financial Services Agency (FSA) will request banks to disclose data quarterly. FSA will call on major banks to disclose key financial data, including core banking profits and capital ratios. Banks currently publicize such information only twice a year, which is not enough for an adequate assessment of their financial health. The quarterly reports will be aimed at enabling the FSA and market participants to accurately gauge the impact of such events as an abrupt stock market fall and bad-loan disposals. They are also expected to serve as an incentive for the banks to turn their operations around faster. FSA also intends to require banks to provide depositors with more information about the state of their operations, since full government protection of bank deposits is due at the end March 31. Banks will be called on to disclose data covering three-month periods ending March, June, September and December, including details of their transactions for securities, currencies and derivatives. Large banks now report earnings results and projections for half-year periods ending September and March, and announce revised estimates only when a major change in their business environment is certain to throw previous estimates far off the mark. The FSA is especially concerned that some banks might suffer capital shortages due to accelerated bad-loan disposal and new accounting rules that require banks to subtract 60% of latent losses on shareholdings from shareholders' capital. (September 26, the Nihon Keizai Shimbun)

A growing chorus in the Tokyo stock market is calling for more drastic action to eliminate the bad loans that are weighing down the nation's banking system. The agenda of priority reforms recently unveiled by the Koizumi Cabinet spotlights measures to tackle the problem, including reassessing a gray area of loans classified as "requiring attention." But the stock market appears to be signaling that the cleanup plan is not bold enough. While the benchmark Nikkei Stock Average rebounded, shares of the four big banking groups and large retailers were hit with selling pressure. Some stock market participants are now starting to suggest that the market will act as a force pushing Prime Minister Koizumi and his Cabinet to take more radical steps. A unified plan that includes both injections of public funds to banks and rehabilitation of companies is absolutely vital. The Council on Economic and Fiscal Policy has unveiled a series of steps including conducting special examinations of major banks by the FSA and giving the Resolution and Collection Corp. (RCC) a bigger role in the loan cleanup. Although the plan gives the RCC the flexibility to buy nonperforming loans at book value, it does not give the resolution entity the mandate to buy gray-zone loans still considered performing. It also does not touch on the issue of reopening the government's bank recapitalization program and conducting new injections of public funds. Until now, bank stocks have held up reasonably well, despite the sharp increase in unrealized losses caused by the broad stock market decline. But the market is virtually counting on the use of public funds to shore up banks.　　(September 26, the Nikkei Financial Daily)

Senior members of a Liberal Democratic Party tax panel failed to agree to proposals aimed at reforming capital gains taxes paid by individual stock investors, postponing further consideration until early October. Sohei Miyashita, head of an LDP Research Commission on the Tax System subcommittee, was among members urging that the abolition date of a current withholding tax option on capital gains should be brought forward to January 2002 from April 2003, leaving self-assessment as the only tax choice. They argued that the current 26% rate on self-assessed gains reported in individual income tax returns should be lowered provided that the withholding option is abolished. The three coalition parties, including New Komeito and the New Conservative Party, agreed to the reforms. However, Hideyuki Aizawa, head of the LDP tax panel, and other panel members said that the changes would discourage investors and deal a further blow to the staggering stock market. Aizawa told reporters that "the brokerage industry would not be ready for abolition (of the withholding tax option) in January."　(September 25, the Nihon Keizai Shimbun)

The Council of Economic and Fiscal Policy compiled a list of reform priorities centered on a strategy to accelerate the cleanup of banks' bad loans and assist corporate restructuring. The Council also finalized a longer-term time frame for Prime Minister Koizumi's structural reform policies, which were outlined in a reform blueprint in June. The panel decided to introduce more rigorous inspections of financial institutions by the Financial Services Agency (FSA). In addition, the panel called for the strengthening of the functions of the Resolution and Collection Corp. (RCC) and the creation of a special RCC fund to support the companies' structuring. Priority reform steps that require legislative revisions will be presented to an extraordinary Diet session. Steps requiring budgetary approapriations will be incorporated in a ｓｕｐｐｌｅｍｅｎｔａry budget for the current fiscal year. Bad-loan clean-up is the top priority because a quick overhaul of Japan's financial sector is seen as indispensable to reviving the economy. Prime Minister wants to emphasize that Japan is fully committed to preventing a global economic slide following recent terrorist attacks in the U.S. According to the reform package, FSA will set up its inspections of financial institutions. Major banks' financial states will be screened every year, instead of the current inspections that are held every second year. When FSA conducts a bank inspection, it should work closely with third party auditors to ensure fair and appropriate assessments. If the inspection finds certain borrowers on the brink of bankruptcy, the creditor banks will be required to have the borrowers file for court protection under the bankruptcy law. The FSA will also check banks with loans to companies whose share prices and credit ratings decline sharply. The government will enable the RCC to purchase more bad loans from banks. Other priority steps include the establishment of a temporary public services employment program, under which middle-aged and older jobless people will be given public sector jobs, such as teachers' aides or forestry management workers. The priority reform program also calls for speeding up deregulation in health care, education, urban renewal and other areas that are directly associated with the people's daily lives. The package also emphasizes the need for quick action to revitalize the nation's flagging stock market, calling for an overhaul of the securities tax code. The reform timetable for longer term policy steps features program covering privatization, venture support, social welfare reform, promotion of information technology, human resource development, fiscal reform. On the revitalization of the financial sector, the reform timetable says that the nation's bad-loan problems will be solved in two to three years as a result of tightening FSA inspections on banks and expanding the RCC functions. (September 22, the Japan Times, the Nihon Keizai Shimbun)

To stimulate private-sector demand and support the economy, the government has drawn up a list of priority reform measures that focus on the cleanup of bad loans and helping firms restructure. Included among the proposed reforms are strict inspections of financial institutions by the Financial Services Agency (FSA), in addition to the creation of a special fund by the Resolution and Collection Corp. (RCC) to support the restructuring of ailing companies. The Koizumi Cabinet concluded that the bad-loan problem must be resolved for Japan's economy to prosper. The Council on Economic and Fiscal Policy will compile an agenda of priority reforms. The FSA intends to bolster its examinations of financial institutions by inspecting major banks every year, instead of the current practice (once every two years). In addition, the agency plans to conduct semiannual inspections of major banks with loans to companies that experience a sharp decline in share prices or credit ratings. Also, the FSA will ask banks to provide accurate and swift assessments of their assets and encourage them to set aside adequate loan loss reserves. To encourage restructuring in the industrial sector, the RCC plans to team up with the Development Bank of Japan and private-sector investors to establish a new fund that will buy bad loans from banks over a three-year period. These loan receivables will then be transformed into stock of the ailing borrowers, thus easing the debt burden of borrowers, while giving management rights to the fund. The firms would then rebuild operations under the watchful eye of experts who would provide advice. Profits earned on investments in companies that successfully rebuild their operations will be paid out to the investors. The government plans to designate the next two to three years as the time frame to focus on reform, while carrying out bad-loan disposals and rebuilding industry. To cope with unemployment and increased deflationary pressure, the government intends to hammer out employment measures and implement deregulation. (September 21, the Nihon Keizai Shimbun)

Japan's Financial Services Minister said that a gap in the Financial Services Agency (FSA) and the market's assessment of Japanese banks' problem loans should be avoided. Explaining the FSA's adoption of market signals in credit ratings and stock prices or the quality of the loans on banks' books, the biggest point is that there would be a difference between the voice of the market and the FSA's assessment. The issue of a gap in bad loan assessments by the authorities and the market was raised by the collapse of major retailer Mycal Corp. and department store Sogo Co. last year. Both of them had received poor evaluations from the market, even though the banks viewed them as credible borrowers. New bad loan-inspection guidelines that take into account the credit ratings and stock prices of borrowers were included in Prime Minister Koizumi's reform program guidelines approved by the Council on Economic and Fiscal Policy. The reform program focuses on "normalizing" Japan's bad loan situation in three years. Yanagisawa said that he would admit Japan's non-performing loan situation to have returned to normal, if the banks' non-performing loan ratio falls to 4%. The Minister also conditionally commended the announcement by Asahi Bank Ltd. and Daiwa Bank Ltd. will merge under a holding company. They are both rich in regional operations and they balance each other well, so the merger makes sense. Asahi and Daiwa, among the weakest of Japan's major banks, aim to integrate their operations under a holding company by March 31 end of this fiscal year. The combination will create the fifth-largest Japanese banking group, with assets of around 50 trillion Yen. Plant relocations to China and other countries are expected to continue, putting downward pressure on domestic land prices. Banks would then face further construction on operations as the value of land collateral for loans to poorly performing firms continues declining. (September 21, the Nihon Keizai Shimbun)

The government's comprehensive economic reform timetable calls for banks to bolster loan provisions for practical dealing with default risks. The emphasis is put on preparing for a scenario in which borrowers suffer a credit downgrade. Meanwhile, a private-sector group released guidelines for out-of-court settlements for debt forgiveness. Normal loans for accounting purposes should be treated with caution, since the likelihood of repayment is questionable. Banks currently set aside 3-5% in loss reserves for loans requiring extra attention. But the policy's feasibility is being questioned in the face of data showing that over 40% of failed businesses in recent years were in the extra- attention category up to six months before they collapsed. Analysts have argued that loans to companies viewed by the market in serious trouble are high risks, and this assessment should be reflected in loan loss reserves. However, the Financial Services Agency expressed concern that sharp increases in loss provisions will inhibit continuing loans to the borrowers involved. Sumitomo Trust & Banking Co. sets up loan loss reserves for 25% of combined unsecured loans to firms in the potential risk category in the construction and distribution sectors. Guidelines on private efforts to resolve credit problems will smooth the way for debt relief negotiations to move forward. Until recently, initiatives by main creditor banks to forgive debts have often been thwarted by the refusal of some lenders. It is desirable that banks will think twice about not participating when creditors meet to discuss guidelines. Lenders are to follow the guidelines include public credit institutions, notably the Deposit Insurance Corp. This is significant because the DIC buys back depreciated loans, such as those under a debt relief program, from former nationalized banks by virtue of government warranties, a factor that previously deterred debtors from asking forgiveness from those banks. The guidelines do not necessarily make life easier for debt-ridden companies. For one thing, the guidelines demand that beneficiaries return to solvency within three years. For general contractors, which face substantial appraisal losses under tightened accounting rules, it will be extremely difficult to meet that condition.　　（September 20, The Nihon Keizai Shimbun）

The government's Tax Commission drafted a basic position paper on securities tax reform, including a plan to abolish the withholding tax option on capital gains. The report is intended to clarify its basic position on securities tax reform before an extraordinary Diet session convenes. The tax panel primarily focused on moving the abolition of the withholding tax option forward, and it is scheduled for abolition in March 2003. In the current two-tier capital gains tax system, taxes on stock trades are paid either as a 1.05% withholding tax on individual sales of shares, whether sold for a profit or a loss, or optionally as a 26% tax on total gains for the year. The report says that after the withholding tax option is scrapped, steps should be taken to lower the capital gains tax rate to 20%. This is to let stock investors carry over trading losses and to abolish the current tax exemption for capital gains of up to 1 million Yen. (September 19, the Nihon Keizai Shimbun, the Japan Times)

The government and the ruling Liberal Democratic Party agreed to take a legislative step in the coming extraordinary Diet session to reinforce the function of the Resolution and Collection Corp. (RCC), a state-run debt collector. LDP Secretary General, Yamasaki refused to disclose the details of RCC's reinforcement plan, simply that the Financial Services Agency will take the initiative in writing the bill. One of the possible measures is allowing RCC to extend loans to heavily indebted companies to help keep them afloat. While acknowledging the need for RCC to play a bigger role in facilitating corporate reconstruction, it would be difficult for the state-run debt collector to take over loans classified by banks as risky. (September 19, the Nihon Keizai Shimbun, September 18, the Japan Times)

To promote the final disposal of bad debts in the banking sector, a panel of business and banking leaders plans to request the government to make debt waivers granted by financial institutions tax-deductible. The panel, which counts among its members the Japanese Bankers Association (Zenginkyo) and the Japan Federation of Economic Organizations (Keidanren), is currently working out guidelines for the disposal of bad loans by financial institutions. The panel plans to finalize its guidelines by the end of the month. The panel hopes that zero tax burdens will help encourage banks to remove bad debts from their balance sheets. The National Tax Administration (NTA) is expected to agree to the request. Although the panel's guidelines will not be legally binding, financial institutions are likely to adhere to them when they forgive debts. Currently, when financial institutions write off debts to failed companies that are restructuring under a legal framework, such as proceedings stipulated in the Corporate Reorganization Law, the related costs are treated as a loss as the loans are deemed irrecoverable. However, a debt waiver is considered a part of private restructuring procedures that do not go through the court process. As a result, the waiver is deemed a gift; in principle, it cannot be deducted as a loss. The guidelines will help increase the transparency of debt-waiver proceedings, so the public will be less likely to be critical of the government's decision to make debt waivers tax-deductible. (September 7, the Nihon Keizai Shimbun)

Japan agreed to an IMF audit of the troubled financial sector. The Financial Services Agency (FSA) will hold working-level talks with the International Monetary Fund (IMF) when and how to conduct the investigation. The assessment program, introduced by the IMF and the World Bank in 1999 following the 1997-1998 Asian financial crisis, is intended to identify the strengths and vulnerabilities of a country's financial system. Although Minister Yanagisawa is open to the idea of the IMF probe, the current staffing situation at the FSA does not allow it. During the meeting, however, Yanagisawa clarified Japan's acceptance of the assessment in an apparent attempt to dispel speculation that Japan may be trying to conceal the precise amount of bad loans at its banks by rejecting the IMF request. The IMF hinted that Japan may have to pump public funds into banks in order to strengthen their capital bases, which are eroding due to the disposal of problem loans. In a recent report, the IMF said that some private analysts believe Japanese banks may require additional loan loss reserves of \20 trillion to \30 trillion. According to the agency, bad loans outstanding at Japanese banks totaled \43.4 trillion as of the end of March. (September 7, the Japan Times, the Nihon Keizai Shimbun)

Prompted by sharp stock price declines, the Liberal Democratic Party's tax research panel agreed to speed up their deliberations on proposed revisions in the securities tax code.　　"Securities taxes will be one of the first things to be placed under consideration as interest among the markets is very high," said Hideyuki Aizawa, chairman of the LDP Research Commission on the Tax System. The panel plans to discuss tax code revisions, along with potential legislative revisions to establish a proposed stock entity that will acquire bank-held shares. Currently, investors can choose between paying a 26% capital gains tax, when they file taxes at the end of the year or paying a 1.05% withholding tax on a stock transaction, which does not factor in the amount of gain or loss. Consequently, the latter is favorable to investors with large capital gains. The hot topic within the LDP tax panel is whether to continue the 1.05% withholding tax option, which is due to be abolished at the end of March 2003. Senior officials are divided over whether to do away with the option as planned, or to postpone the abolition. The Financial Services Agency advocates postponing the abolition of the withholding tax, while at the same time lowering the capital gains tax from 26% to 10%. Meanwhile, the government's tax research panel, an advisory council to Prime Minister Koizumi, plans to compile its own proposals this month.　　(September 6, the Nihon Keizai Shimbun)

With the government's Tax Commission to introduce tax carry forwards of stock market losses, the next focus for debate will be abolishing the withholding taxation system on capital gains. Both the Tax Commission and Finance Ministry still hold the position that taxation on securities capital gains should be unified under a self-filing taxation system. In view of the slumping stock prices, however, there is strong opposition among the securities industry and ruling coalition against abolishing the withholding tax in May 2003. Proposed revisions that would allow losses on securities sales to be carried forward can be applied to the self-filing taxation system. The withholding tax has won recognition as a simple and transparent system that allows taxes to be deducted directly from stock sale procedures. There are concerns within the ruling Liberal Democratic Party that the stock market will become less attractive if this system is abolished. (September 5, the Nihon Keizai Shimbun)

The ruling Liberal Democratic Party's tax committee discussed stock tax breaks, but nothing specific was decided. According to Hideyuki Aizawa, the panel discussed tax measures to stimulate stock trade, such as capital gains tax cuts, and a schedule for implementation on the tax reforms. Mere tax breaks would be enough to bolster the sagging stock market, as there were other concerns weighing on market sentiment, including the sluggish economic outlook and the downturn in U.S. equities. He added that the tax panel would meet to discuss tax breaks for the government-sponsored stock buying fund. Sohei Miyashita, the head of the panel's main policy-making subcommittee, also said that he didn't view further capital gains tax breaks as a measure that would bolster the equities market. (September 5, Dow Jones)

Financial Services Minister Hakuo Yanagisawa has decided to permit experts from the International Monetary Fund （IMF） to inspect Japan's banking system.　　Yanagisawa believes that the inspection will help rebuild confidence in Japan's financial system and plans to inform IMF Managing Director Horst Kohler of the decision Japan will be open to IMF inspections to dispel market uncertainty and to raise Japan's financial transparency. He intends to explain, however, that a manpower shortage at the Financial Services Agency will make inspections difficult at the present time, with requiring clerical works. Yanagisawa plans to work out a way to simplify the inspection process and to push back the timetable for the IMF team's visit to Japan. Financial system inspections were introduced by the IMF and the World Bank in 1999 in the wake of financial crises in Southeast Asia and Russia in 1997 and 1998, respectively. The two organizations will inspect and monitor the stability of the financial systems of member nations. The IMF team will examine if Japanese financial authorities are observing the standards of the Bank of International Settlements and whether the Japanese financial system is stable. Of advanced industrialized nations, Canada is the only nation thus far to have been inspected by the IMF. The U.K. and Germany have announced plans to accept such an audit. (September 5, the Nihon Keizai Shimbun)

Calls are growing for the Bank of Japan (BOJ) to take additional monetary easing steps, as stock prices continue to slide and deflationary pressures persist. Officials at the central bank are carefully studying the pros and cons of further credit-easing policies to prevent the economy from sliding further into recession, while waiting for the so-called quantitative monetary easing implemented in August to take full effect. The BOJ decided to raise the target for outstanding balance of current accounts held at the bank by 1 trillion Yen to some 6 trillion Yen. In total, banks are required to put aside 4 trillion Yen as reserves for deposit withdrawals. But no strings are attached to the remaining 2 trillion Yen. The BOJ hoped that additional liquidity would encourage banks to boost lendings and increase securities investments, however, it was not successful. Top government officials and LDP legislators are urging the bank to raise the target for current-accounts balances above 7 trillion Yen in a bid to prompt risk-avert financial institutions to lend and invest more. The question is how to raise liquidity when banks hardly need additional money. One possible solution is to increase the BOJ's outright purchase of long-term government bonds held by banks from the current 600 billion Yen a month. Although this will help bring down long-term interest rates as the demand/supply situation of long-term government bonds becomes tighter, the measure could increase concerns over a loss of fiscal discipline and send long-term rates sharply higher.
Secondly, some LDP members are calling for the introduction of an inflation rate target. They argue that ample provision of funds in the economy through increased money supply will boost the value of goods relative to money. According to this approach, the prospects of inflation will likely prompt both consumers and companies to make purchases before prices go up, helping the economy to recover. Prime Minister Koizumi appears cautious saying that once inflation sets in it is difficult to control. The third measure under discussion is the BOJ's outright purchase of securities issued by private companies, such as commercial paper, bonds and shares. The underlying view is that banks are too preoccupied with their bad loan problems to perform their function as lenders, despite the repeated quantitative easing steps taken by the BOJ. The measure is designed to provide credit directly to corporate borrowers.
The risk with this measure is that with many companies trying to reduce assets and trim debts to improve their financial composition, they may be tempted to use funds raised through the sale of CPs and other securities to repay debts rather than expand business and conduct capital investment. Finally, some economists are calling on the central bank to acquire a stake in Resolution and Collection Corp. to enable it to increase the purchase of bad loan claims. The government and the BOJ need more discussion on relevant issues, including who will pay for losses if purchased loan claims become uncollectible. (September 4, the Nihon Keizai Shimbun)

Fifteen major commercial banks in Japan will be able to write off about 60% of bad loans held by borrowers in danger of bankruptcy or worse by the end of fiscal 2005. The prediction by Minister Yanagisawa of Financial Services Agency (FSA) was based on an estimate by the Agency which studies the likelihood of banks disposing of bad loans under a government policy. Yanagisawa apparently is attempting to clarify to the Western bankers the government's position that the solution to the bad-loan problem will come through banks agreeing to forgive debts and sell off loans to meet a government goal calling for substantial loan disposal within two to three years. The FSA reported to the council of Economic and fiscal Policy that the balance of nonperforming loans held by the 15 banks will be reduced to 7 -10 trillion Yen in fiscal 2007 from 17.4 trillion Yen as of the end of March 2001. The Agency also estimated in the report that the balance of such loans would see little change for three years after fiscal 2001, prompting stock dealers to assume that the speed of nonperforming loan write-offs would be slower than expected. The estimation showed that the amount of outstanding loans to corporations in need of attention will remain in the 5.1-5.5 trillion Yen range until fiscal 2005, due to the slumping economy. (September 4, the Daily Yomiuri, the Yomiuri Shimbun)

The Tax Commission and the Fiscal system Council hammered out a consensus that any tax reforms should target a long-term revitalization of the stock market, instead of a quick fix to prop up share prices in the short term. They also announced that they will review eliminating various tax incentives, which favor savings over investment in the stock market. Lowering the capital gains tax rate is among the key items on the reform agenda, but how to handle a withholding tax that investors can now opt to pay instead of filing for capital gains taxes remains an open question. Pegged to the Yen value of a stock sale regardless of a capital gain's size, the withholding tax option is favorable to many investors with large capital gains. The Tax Commission Chairman, Hiromitsu Ishi, said that his panel will consider capital gains rate cuts only if the withholding tax option is eliminated. "Although opinion is divided in the Liberal Democratic Party's Research Commission on the Tax System, our panel has decided to eliminate the withholding tax option," Ishi said. (September 3, the Nihon Keizai Shimbun)

The government's Tax Commission resumed talks on securities tax reforms and aimed to devise a basic outline on securities tax reforms at the end of September. The commission's subcommittee on financial issues had earlier planned to draft a basic outline in November. However, it decided to move the date as the government and ruling parties are trying to speed up securities tax reforms in the face of falling share prices. The Financial Services Agency and the Japan Securities Dealers Association submitted their requests for tax reforms such as lowering the capital gains tax rate from 26% to 10%. They also sought the continuation of an alternative withholding tax system, which is to be abolished at the end of March 2003. Some subcommittee members opposed this request, citing that the abolishment has been delayed twice already. (September 1, the Nihon Keizai Shimbun)