Yoshifumi Nishikawa, president of the Japan Post

Privatizing the nation's sprawling postal service, which runs banking and insurance services, has been a centerpiece of Prime Minister Junichiro Koizumi's structural reform.

Japan Post President Yoshifumi Nishikawa submitted the plan July 31 to Internal Affairs and Communications Minister Heizo Takenaka, according to a spokesman.

Under the plan, Japan Post will be split into four entities; banking, insurance, mail delivery and counter-service management.

The new postal savings bank, tentatively named Yucho Bank, will have ¥226.99 trillion in assets, Japan Post said on its Web site.

That makes Yucho the biggest bank in the world by assets, according to public broadcaster NHK. The privatization, which begins in 2007, is to be completed in 2017.

The road map calls for Yucho and Kampo shares to be listed on the Tokyo Stock Exchange four years after their privatization. A holding company will own shares in Yucho and Kampo for another five years, after which all shares will be sold to private investors.

The Japan Times Weekly: Aug. 5, 2006
(C) All rights reserved