The Development Bank of Japan Inc. Law (New DBJ Law)
The Establishment of the Development Bank of Japan Inc.
(Enactment of the New DBJ Law at the 166th Regular Diet Upper House Plenary Session)
Excerpt from the New DBJ Law (Law No. 85 of 2007)
The Development Bank of Japan Inc. Law (New DBJ Law)The Establishment of the Development Bank of Japan Inc.(Enactment of the New DBJ Law at the 166th Regular Diet Upper House Plenary Session)
- The Development Bank of Japan Inc. Law (New DBJ Law) was passed by the 166th regular Diet Upper House plenary session, and subsequently enacted. This law provides for the Development Bank of Japan (DBJ)'s privatization (conversion to a joint-stock company) in October 2008, leading to full privatization five to seven years thereafter, the exact timing to be determined by taking market trends into account.
- The Important Policy of Administrative Reform (approved by Cabinet on December 24, 2005), the Administrative Reform Promotion Law and other legislation stipulate that provisions are to be made to ensure the financial base necessary for smooth operation through DBJ's full privatization, and, to be made as needed, to ensure DBJ maintains its core investment and loan functions, which involve long-term business funding. In light of these stipulations, to make the necessary provisions for the new company in preparation for realizing full privatization, the New DBJ Law was submitted as the Development Bank of Japan Inc. Bill at this regular Diet Upper House plenary session and deliberated by both Houses.
- To meet the societal requirements of each era, DBJ had hitherto been involved in projects in such areas as regional communities and the environment to the effect of complementing and promoting financing and other business conducted by general financial institutions. In these endeavors, DBJ utilized its expertise in business evaluation and other areas to secure regular profitability and contribute to Japan's economic development by bearing risks that are difficult to undertake for private financial institutions, such as supplying long-term funding.
- While maintaining such strengths as its medium- to long-term investment and financing functions and operating base, in the future DBJ will pursue high-value-added financing that does not shy away from risk through diverse financial services unconstrained by its existing funding framework. In these endeavors, the Bank aims to be a financial institution that is valued by its various stakeholders, including shareholders, following privatization.