By Tomoki Okamoto and Kentaro Matsumoto / Yomiuri Shimbun Staff Writers

The role of public financial institutions, such as the Development Bank of Japan (DBJ), and public-private investment funds will be crucial in the expansion of investment in fields that Prime Minister Sanae Takaichi regards as critical to Japan's economic growth, said Tatsuya Ito, a heavyweight in the ruling Liberal Democratic Party.

Ito serves as chairperson of the LDP's Research Commission on the Finance and Banking Systems. The following is excerpted from his interview with The Yomiuri Shimbun.

The Yomiuri Shimbun: In May, the research commission presented a proposal that calls for strengthening the role of financial institutions to achieve economic growth. Could you elaborate?

Tatsuya Ito: The Takaichi administration has set a goal of achieving a strong economy. To realize this, it is necessary to expand investment in the "17 strategic fields." This requires cooperation between the public and private sectors. Ultimately, the expansion of private-sector investment and financing will play the biggest role in underpinning economic growth, but to achieve that, public financial institutions and public-private investment funds must take the lead and act as a catalyst.

Among the 17 strategic fields, there are sectors like shipbuilding where public-private collaboration is already well underway. However, there are also areas where the technology is advanced, but its future outlook remains highly uncertain, necessitating further discussion. I propose the establishment of a platform where the public and private sectors can discuss how to foster cooperation.

Yomiuri: The role of regional financial institutions is also crucial to building a strong economy. What are your expectations for them?

Ito: These institutions need to go beyond conventional services, such as cash flow support. They must provide investments and loans that actively evaluate and improve the recipient's operations.

A new financing system was established in May, allowing financial institutions to provide loans based on a company's total enterprise value. I encourage regional financial institutions to leverage their roles as customers' primary banks in ways that suit the current era.

Yomiuri: Concerns are growing that cutting-edge AI technologies, such as Anthropic PBC's Claude Mythos model, could be misused for cyberattacks. What are your thoughts on the issue?

Ito: It is crucial to respond effectively to emerging threats. We must strengthen our defenses across multiple levels. The first level is self-support -- financial institutions need to take measures themselves to enhance their cyber resilience. The second is public assistance provided by the government. The last is mutual support, as robust cooperation across the financial industry is also needed.

Yomiuri: Moves to build new payment systems are gaining global momentum due to advancements in blockchain technology. How should Japan respond?

Ito: If Japan falls behind in building new payment systems, our dependence on other countries may increase, and the very survival of the Japanese economy could be placed in the hands of foreign nations. To avoid such a situation, I urge the Financial Services Agency to take the lead in establishing a study group with the help of the Finance Ministry, the Bank of Japan, and the private sector to discuss the issue and compile an interim report by early next year.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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June 02, 2026 20:08 ET (00:08 GMT)

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