Japan: Postal privatization blueprint approved
The government has given the green light to a blueprint submitted earlier this year by Japan Post Corp. for privatizing postal services.
Monday’s approval was the government’s final endorsement of the 10-year privatization process beginning Oct. 1, when postal services will be split into four stock firms — savings, insurance, mail and over-the-counter services — under Japan Post, which will turn into their holding company.
The blueprint, submitted to the government in late April, includes the list of assets and employees Japan Post will take over from the public postal corporation that currently runs postal operations.
The blueprint outlines some new businesses planned for the privatized entities. Among them is letting the postal savings bank act as a sales agent for regional banks for their housing-loan products.
The bank and life insurance industries have voiced concerns about the postal financial institutions expanding operations, saying they could threaten them.
Masayuki Oku, chairman of the Japanese Bankers Association, released a statement Monday saying he regrets that the approved blueprint “fails to contain any specific plan for scaling down postal savings.”
“It means that (the planned savings bank) will expand operations while the government’s capital subscription in it is maintained,” he said.
Kunie Okamoto, chairman of the Life Insurance Association of Japan, called on the government to consider allowing the postal life insurance company to undertake new operations only after ensuring conditions for fair competition in the market.
