Japan Post: Postal reforms to start in earnest
Japan Post will be split into four business entities–Japan Post Network, Japan Post Service, Japan Post Bank and Japan Post Insurance–under a holding company called Japan Post Holdings Co.
Japan Post Bank and Japan Post Insurance will aim to list their stocks on the market in about three years, and all of their shares held by the government will be sold within 10 years to fully privatize themselves.
The holding company will also aim to list its shares, but the government will keep a more than one-third stake in it.
The massive amount of funds flowing into postal savings and insurance have long been used for the purchase of government bonds and for loans to public corporations. The primary purpose of postal privatization is to change the nature of postal savings and insurance from one of public financing, so the private sector can utilize funds deposited by people effectively.
Japan Post Bank holds 222 trillion yen in total assets, while Japan Post Insurance has 112 trillion yen. They will become the nation’s biggest bank and life insurance Company, respectively.
Japan Post Bank plans to enter the housing loan and consumer credit card businesses, with an eye to providing loans to corporations, among other business goals. Japan Post Insurance aims to enter the medical insurance and other markets.
Japan Post Bank wants to abolish ceilings on deposits while Japan Post Insurance hopes to raise the ceilings on the insurance benefits.
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