Japan Unveils Market Reforms

Japanese Prime Minister Ryutaro Hashimoto released plans for a program of drastic deregulation of Japanese financial markets aimed at bringing their rules in line with the much freer markets of New York and London by 2001. The first step in the long-expected deregulation program will be liberalization of foreign exchange controls, a step due to be implemented next year, according to a Finance Ministry official. Another change will allow banks, securities firms and insurance companies to enter each other’s business areas. Other reforms will boost the transparency of the Tokyo market, establish laws and accounting rules consistent with global standards and simplify taxes on financial transactions.