The Financial System Council, an advisory panel to the head of the Financial Services Agency, on Friday resumed work aimed at revising the Banking Law next year to cope with an expected influx of new banks.

In its first plenary meeting since the July 1 launch of the agency, the panel also agreed to discuss specifics regarding legislation aimed at protecting personal credit information.

The council plans to make recommendations on these issues by the end of December so that relevant bills can be submitted to the Diet early next year, said panel head Keimei Kaizuka, a Chuo University professor.

On Thursday, the Financial Reconstruction Commission, another banking regulator above the FSA, formalized guidelines for granting licenses to new types of banks, such as Internet-based banks.

The relevant legal revisions to be considered by the panel could possibly authorize regulators to reject any bank buyer that may adversely affect sound management of the bank.

The panel will meanwhile set up a study group of experts to set a long-term agenda for the nation's financial system, Kaizuka said.

The FSA replaced the Finance Ministry as the panel's secretariat, as the agency incorporated the ministry's policy-planning authority regarding financial institutions.