A rising Nikkei index may have helped the major Japanese banks produce favourable first-half financial results but while optimists can claim some progress, the overall banking sector remains highly vulnerable. This was underlined by prime minister Jurichiro Koizumi’s recent decision to nationalise temporarily the troubled regional bank Ashikaga Financial Group, at an estimated cost of Ą1,000bn ($9.1bn). It was the second bank to be bailed out by the government in 2003, after Resona Group received a massive Ą2,000bn capital injection in June. “We decided to nationalise (Ashikaga) temporarily in order to prevent confusion,” Mr Koizumi said. “It was the responsible move.”
Probable support
