Finance Minister Masajuro Shiokawa confirmed Friday the government cannot force banks to accept public money to shore up their capital by the end of the fiscal year.
"Under the current legal framework," Shiokawa said, "the government cannot forcibly inject public funds into banks."
Under the Deposit Insurance Law, the prime minister can call an emergency meeting to consider an injection of public money when there is fear of a grave systemic risk.
The Financial Services Agency says there is now no need to inject public money into banks, he added.