Osaka Gov. Fusae Ota handed a petition to the Bank of Japan governor and other top finance officials Thursday, requesting that Resona Bank continue to function as a major regional bank after its effective nationalization.
"I confirmed that the government will not change the position (of Resona Bank) as a regional bank," Ota said after meeting with Finance Minister Masajuro Shiokawa and Heizo Takenaka, state minister for financial, economic and fiscal policy.
Ota said the petition also urges the government to carry out steps to help small and midsize companies.
Later in the day, BOJ Gov. Toshihiko Fukui said he told Ota the central bank is ready to help small companies through Resona. He also expressed his desire that the bailout leads to a new business model.
"I don't think we can create a new business model while turning our back on small and midsize companies," he said.
The government plans to recapitalize the struggling Resona Bank, headquartered in Osaka, by injecting public funds into it in a move that would put it under effective state control.
The petition was signed jointly by Osaka Prefecture, the city of Osaka, the Kansai Economic Federation and the Osaka Chamber of Commerce and Industry.
Ota made similar appeals Wednesday to the Small and Medium Enterprise Agency.
