Japans economy slips deeper into recession as government spending cuts continue
BANK TO CREDIT THE BANKER
The government of Prime 바카라Minister Shinzo Abe has recently started promising tax increases to the banks to provide funding to their operations, but in the case of financial giant Mizuho 바카라사이트Securities the banks will receive only about 10 percent of this revenue.
Yokohama-based Mizuho Securities chief Kazuo Fukumoto explained why this is the case in a speech before the National People’s Congress on Feb. 19:
“As the world’s second-largest bank, our aim was to provide additional liquidity to our customers in the midst of a global financial crisis…As such, we’re working hard to provide liquidity to our customers in the face of a global finan바카라사이트cial crisis. In response to our customers’ requests, we are building additional branches in Japan. At the end of May, we expected to have a capacity of 500,000 new branch openings, but now we will have only 12,000.
“By giving all shareholders the benefit of the tax hike, we are able to pay an extra 4.5 billion yen to the banking sector each year while offering a new level of economic sustainability and long-term growth.”
On May 7, the government decided on a tax hike of around 20 percent on dividends and stock-based compensation (bonds).
Mizuho Securities is not alone in failing to meet customers’ wishes. Bank of China said recently that it had only received 1.5 percent of sales from the Chinese government’s People’s Bank of China. (Additional reporting by Masashi Kajiyama; Writing by David Stamp; Editing by Lisa Shumaker)