TOKYO May 20 Japanese Prime Minister Shinzo
Abe's ruling party will urge the government to consider
strengthening the governance of the world's biggest pension fund
and to promote the creation of "super regional banks", a party
source involved in the matter said.
The proposals are part of a submission the Liberal
Democratic Party will make as early as this week to the
government for consideration in Abe's "growth strategy" of
economic structural reforms, due in June, the source told
The LDP will propose that the government consider legal
changes to strengthen the governance of the $1.26 trillion
Government Pension Investment Fund (GPIF), the source said.
Details of the proposal were not immediately available, but
sources have told Reuters that Abe is moving to shake up
oversight of the GPIF by giving it an expanded board with its
first full-time members to steer a shift out of Japanese
government bonds and into higher-yielding assets.
Laying the institutional and legal framework for super
regional banks could promote the consolidation of Japan's 100
The former head of Japan's banking regulator told a Reuters
Summit on Monday that consolidation is necessary for regional
banks to survive a climate of dwindling borrowers, as it will
allow them to extend riskier and therefore more profitable forms
The LDP will also propose the expansion of Japan's
professional baseball leagues to 16 teams from 12 to energise
regional economies, the source said. It was not immediately
clear what the government's role would be.
(Reporting by Takaya Yamaguchi; Writing by William Mallard;
Editing by Edmund Klamann)