Japan Banks Struggling over Defense Investments, Loans
Tokyo, Sept. 7 (Jiji Press)--Japanese major banks and other private-sector financial institutions are struggling to meet the government's calls for cooperation in providing investments and loans to the defense industry. The government-held Development Bank of Japan has changed its operational rules on investments in arms manufacturers, abolishing restrictions. While a megabank official s...
Japanese major banks and private-sector financial institutions are facing challenges in fulfilling the government's request for cooperation in providing investments and loans to the defense industry. The Development Bank of Japan, a government-owned entity, recently revised its investment rules for arms manufacturers, eliminating previous restrictions.
However, while a senior official from a megabank stated that decisions on investments and loans will be made on a case-by-case basis, most commercial financial institutions remain hesitant. This caution stems from worries about potential damage to their corporate image and negative effects on their overseas businesses, particularly in China.
In July, Defense Minister Shinjiro Koizumi, during a meeting with the Japanese Bankers Association and other stakeholders, urged for increased investments and loans in the defense sector. He emphasized that for businesses in the defense industry to thrive and grow, it is crucial to receive financial support at the right time.
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