BANKING & FINANCE - April 6, 1996

Bank of Japan Reforms Planned: Japan will forge a consensus by the time parliament adjourns in mid-June on how to make its central bank more independent, Shigeru Ito of the Social Democratic Party told reporters. The goal is to bolster the bank’s authority and make it less dependent on its powerful supervisor, the Ministry of Finance. The move is in line with political pressure to weaken the authority of the ministry, under fire for its alleged mishandling of Japan’s banking problems, Daiwa Bank’s bond-loss debacle last year and a series of scandals involving ministry officials.