Bank of Japan Gov. Masaru Hayami has advised Prime Minister Junichiro Koizumi to funnel public funds into banks' depleted capital accounts to stabilize the banking system, government officials said Wednesday.
Chief Cabinet Secretary Yasuo Fukuda hinted that Koizumi and Hayami discussed the issue during a meeting Tuesday evening at the Prime Minister's Official Residence.
The top government spokesman told reporters that Koizumi and Hayami "did not concentrate on the subject (of capital injection)," but did not deny Hayami had made the recommendation.