The most important and urgent task Japan faces today is to take legislative actions for the stabilization of its financial system. The Japanese economy can not show its early recovery without the stabilization.
Any delay in legislative procedure for the stabilization of Japan's financial system would constitute a serious blow to not only the Japanese but also the global economy. The Diet should strive to establish legal frameworks immediately that enable the early stabilization of the financial system, on the basis of close cooperation between the ruling and opposition parties.
Japanese financial institutions need to acquire the competitive edge to cope with the financial Big Bang. Each financial institution must be actively engaged in mergers, organizational restructuring, and the others based on their forward-looking business strategies. At the same time, they need to make their utmost efforts to disclose their operational information.