Regional Banks Key to Addressing Depopulation

Tokyo, Sept. 7 (Jiji Press)--Regional banks have an important role to play in Japan's efforts to cope with its falling population, an economic policy panel chief at the Japan Business Federation (Keidanren) said in a recent interview. "It is regional banks that should seriously consider how to address population decline as they are responsible for infrastructure development in their service areas," said Kunie Okamoto, chairman of Keidanren's Committee on Economic Policy. Amid concerns that about half of municipalities in the country may disappear in the future, regional banks, whose existence may also be put at risk, need to take the lead in efforts to revitalize their regions, Okamoto noted. Okamoto also pointed to the need for the consolidation of cities and towns for regional revitalization. "It is effective to bundle cities and towns," which now number about 1,700, in promoting a "compact city" that puts medical, social welfare and commercial facilities at its center through cooperation of multiple municipalities, he said. Regional banks should actively cooperate with municipalities and map out long-term plans to develop attractive cities and towns, he said. To tackle Japan's falling birthrate, the government should shift the focus of its social security budget from the elderly to the young, Okamoto said. As a future policy task, he called for easing early childhood education costs with increases in maternity and child allowances. Okamoto revealed that Keidanren is considering including these measures in its policy proposals to be put forward shortly. END