Japan's ruling Liberal Democratic party is preparing measures to help small and medium-sized businesses weather the increasingly difficult economic environment, according to the LDP's policy chief.
Shizuka Kamei, head of the LDP's Research Policy Council, indicated on Monday the proposals would include steps to ensure that banks continue to support small and medium-sized companies.
While Mr Kamei would like to see more support from the banks for small and medium-sized companies, the Financial Services Agency, the financial regulator, has signalled that it wants banks to deal more aggressively with their non-performing loans, even if this entails withdrawing support from some of their borrowers.
The Japanese economy is built on the strength of small and medium-sized companies, which are crucial to the country's recovery, Mr Kamei noted. "I believe this matter is too important to be left to the Financial Services Agency. I won't let them oppose us," he said.
