The package of measures to fight deflation that is to be compiled by the government later this week will call for the injection of public funds into the nation's banking sector should the threat of a financial crisis deepen, according to government sources.
It will also call for aggressive inspections of banks by the Financial Services Agency as part of efforts to promote the disposal of nonperforming loans and a further easing of monetary policy by the Bank of Japan, the sources said.
The government will finalize the package on Wednesday at a meeting of the Council on Economic and Fiscal Policy after officials work out the details in the early part of the week, the sources said.