The government decided Tuesday to allow the Financial Services Agency to conduct inspections of nine governmental financial institutions beginning in fiscal 2003, according to government officials.
The bodies that will be inspected include a new public corporation scheduled to be created to take over state-run postal services in 2003, the officials said.
They said the government plans to prepare a bill for submission to the Diet after it starts its next session in January.
The government hopes the FSA inspections will help rectify any unprofitable loan and investment activities undertaken by the public entities and make their overall operations more efficient, the officials said.
The list of institutions under review includes the National Life Finance Corp.; the Agriculture, Forestry and Fisheries Finance Corp.; the Development Bank of Japan; the Japan Bank for International Cooperation; Shoko Chukin Bank; and the planned postal corporation.
Financial Services Minister Hakuo Yanagisawa said the government will make good use of the FSA's knowhow to assess credit and market risks for activities by the public entities.