Banks to consider resumption of political donations

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Banks to consider resumption of political donations

Japanese Bankers Association (JBA) Chairman Kuroyanagi Nobuo revealed at a press conference on October 24 that the JBA had been requested by the Japan Business Federation (Nippon Keidanren) to call on member banks to resume their political donations, and that the JBA had conveyed this request to the member banks.

Kuroyanagi, who is also the president of the Mitsubishi UFJ Financial Group, said his bank will give consideration to the request, adding that nothing has been decided yet.

Due to acceptance of capital injections to clean up bad loans using an enormous amount of public funds, banks have refrained from providing such corporate donations since 1998.

This year the three Mega-Banks (Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui) have completed their repayment of the public loans. Taking this opportunity, the Japan Business Federation has wasted no time in requesting the banks to resume political donations.

These three Mega-Banks produced a record profit in a business year ending last March. Total net profits made by them and three other major banks (Resona, Sumitomo Trust, and Mitsui Trust) exceeded 3 trillion yen.

These banks have not spent a penny on corporate taxes, claiming that they still have losses brought forward from the previous term. They have also maintained deposit interest rates at the lowest possible rate.
- Akahata, October 25, 2006