LDP against banks entering insurance business

Contrarily to the situation in most Westerner countries, Japanese laws do not allow banks to sell insurance policies. It is apparently not going to change for a while.

LDP against banks entering insurance business

TOKYO � Financial policy and research panels of the ruling Liberal Democratic Party (LDP) decided Thursday against a Financial Services Agency (FSA) plan to lift all restrictions on banks entering the insurance business.

Members of the panels expressed concern that banks could press their borrowers to buy insurance policies if they are allowed to engage fully in the insurance business, party officials said. They also fear that the employment of insurance sales personnel could be threatened, they said. (Kyodo News)