Japan gets tough with bank chiefs

quot;If they bank governors fail to achieve the business restructuring plans in a serious way it will be natural to call them to take the responsibility,quot; Yanagisawa told a news conference.

Of the country8217;s top 17 banks, 14 and one regional bank last week formally applied for a combined 7,459 billion yen 62 billion in crucial cash injections from the government to help clear out bad loans.

The 15 banks pledged reforms and profit recovery in exchange for the public money.

Each bank submitted a profit target for the year to March 2003 and discussed its outlook for bad loan disposals and dividend payment.

Finance minister KiichiMiyazawa said international distrust of Japanese banks was easing as seen in the shrinking Japan premium, the extra interest rate imposed by overseas lenders on Japanese banks.