March 28, 1997
The Ministry of Finance
On the decision (Cabinet decision, March 31, 1995) and revision (Cabinet decision, March 29, 1996) of the Deregulation Action Program, the Ministry of Finance positively decided the wide range of measures in the fields of financial services, securities, and insurance, standard, certification and import processing, distribution, etc. and the Ministry has steadily implemented the measures. Also, in the fields of financial services, securities, and insurance, the Ministry is promoting the wide ranging and drastic financial system reform named Japanese version of the "Big Bang".
The Deregulation Action Program is revised at the end of every
fiscal year. The summary of the further revision of the Ministry
plan of this fiscal year is as follows.
1. Summary
(provisional counting)
Note 1: Also included are items common to all Ministries.
Note 2: Completed measures include measures that have sections
that are completed.
2. Main items related to this Ministry
[Customs]
o Simplification of documents for export or import declaration
o Introduction of simplified customs procedures for air express export cargoes
o Shifting from permission system to report-in-advance system and abolition of permission fee on entrance, etc. of cargo outside office hours of the Customs
o Relaxation of requirement for permission of Integrated Hozei
Area
[Finances/Insurance]
o Abolishment of location standards, etc. in establishment of financial institution outlets
o Abolishment of asset use regulations in qualified retirement pension
o Abolishment of rules for capital increase and nature of dividends in regard to banks
o Improvement of regulations in the business area of subsidiary companies
o Lifting of the issuing of yen-based bonds in Foreign Commercial Banks
o Lifting of inferior credit issuance by ordinary banks
o Improvement of limitations in the issuing of lease/credit company bonds and of CPs. (conclusions by June of 1997)
o Liberalization of the premium rates of non-life insurance
o Approval of the applications for automobile insurance with differentiated
rates
[Securities]
o Introduction of stock borrowing in the OTC market from the viewpoint of the activation/vitalization of the dealing business
o Lifting the ban on investment solicitation of unregistered, unlisted stocks by securities firms
o Lifting the ban on investment in unregistered, unlisted stocks by securities investment trusts
o Introducing the book-building method for deciding the offering prices in initial public offers
o Improvement of the environment around transactions of stock futures and options
o Liberalization of the brokerage commissions (conclusion by June of 1997)
o Lifting the ban on Cash Management Account (conclusion by June of 1997)
o Lifting the ban on the sale of investment trust certificates by financial institutions (conclusion by June of 1997)
o Conversion of the accounting standard from the one which centers on the individual account to the one placing importance on the consolidated account (conclusion in 1997)
[International Finances]
o Abolishment of the authorized foreign exchange bank system, the designated securities firm system and the money exchanger system
o Changing foreign exchange approval and prior notification requirements
to ex-post facto reporting requirements.
[Distributions]
o The Central Council on Alcoholic Beverages continues to review
the liquor sales license system and will make a report.
P. 68
Note: Presentations on repeated revisions of this year's plan
have been made as appear below.
November 29, 1996 "Opinions/Requests regarding deregulations" (Ministry of Finance)
December 18, 1996 "Opinions/Requests regarding deregulations" (Management and coordinating agency)
January 17, 1997 "State of review/examination regarding the
deregulations promotion plan" (Ministry of Finance)
Address comments/inquiries to:
Mr. Matsutani, Minister's secretariat, Council room
Tel. 03-3581-4111 Ext. 2238
Items of an individual nature will be received by the suitable
department in charge.
[About the financial system reformation (The Japanese version of the Big Bang)]