A new bank proposed by the Tokyo Metropolitan Government appears to be good news for struggling smaller companies.
But some pundits are cautious about the new public bank's prospects, citing the difficulty of finding good borrowers amid the economic gloom.
On Friday, Tokyo Gov. Shintaro Ishihara officially announced that the metro government will set up a new bank in fiscal 2004. The bank will aim to let money flow into small and midsize companies that are struggling in the face of stringent lending strategies pursued by existing financial institutions.