December 14, 2012
The amount of loans to small- and medium-sized enterprises (SMEs) from mega banks drastically decreased over the past 10 years, according to government data.
The 2012 White Paper on SMEs in Japan released by the Small and Medium Enterprise Agency shows that the total of outstanding loans to SMEs by private financial institutions fell by 70 trillion yen to 223 trillion yen in December 2011 from 293 trillion yen in March 2001.
The apparent major factor in the decrease is the reduction in financial support to SMEs from large banks which prioritize short-term profits under the government’s financial liberalization policies.
The total amount of money that the Bank of Tokyo-Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui used to finance SMEs shrank by 21 trillion yen in total between 2002 and 2011, Akahata reported based on its own survey.
Japanese SMEs account for 99% of all enterprises and employ 70% of the total labor force.
The Japanese Communist Party calls on the government to stop major banks from withholding new loans to SMEs and conducting forcible debt collections.
It also proposes to change the government’s financial policy to one supporting SEMs and promoting a smooth circulation of money into local economies.
The 2012 White Paper on SMEs in Japan released by the Small and Medium Enterprise Agency shows that the total of outstanding loans to SMEs by private financial institutions fell by 70 trillion yen to 223 trillion yen in December 2011 from 293 trillion yen in March 2001.
The apparent major factor in the decrease is the reduction in financial support to SMEs from large banks which prioritize short-term profits under the government’s financial liberalization policies.
The total amount of money that the Bank of Tokyo-Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui used to finance SMEs shrank by 21 trillion yen in total between 2002 and 2011, Akahata reported based on its own survey.
Japanese SMEs account for 99% of all enterprises and employ 70% of the total labor force.
The Japanese Communist Party calls on the government to stop major banks from withholding new loans to SMEs and conducting forcible debt collections.
It also proposes to change the government’s financial policy to one supporting SEMs and promoting a smooth circulation of money into local economies.
