TEIKOKU DATABANK

	Survey on influences of "consolidation of government-run financial. (2005.12)

Over 70% "have no concern" about influences of consolidation of governmental financial institutions on financing.

-Many enterprises look for "advancement of structural reforms" rather than "functions as a safety net"-

Introduction

The government and ruling parties agreed to integrate governmental financial institutions into one body, and are expected to carry out consolidation of them in 2008. In light of the proposals on
this plan, including privatization of the Shoko Chukin Bank and integration of 5 institutions such as Japan Finance Corp. for Small and Medium Enterprise and National Life Finance Corp., the consolidation is believed to have a considerable influence on fund procurement of enterprises.
Teikoku Databank conducted a survey in our "TDB Economic Trends Research," issued monthly since May 2002 (the Internet-based survey) to study about influences of consolidation of government-run financial institutions.
Research Period: November 21-30, 2005
Research Subject: 21,395 corporations across the nation
Valid Responses: 9,955 corporations (response rate 46.5%)

Results of the Research

73.9% respond they "have no concern" about financing aftercon solidation of governmental financial institutions.
About influences of consolidation of government-run financial institutions upon fund procurement
have no concern: 73.9% (7,360 corporations)
have concerns: 11.7% (1,168 corporations)

The fact that companies having no concern about influences of consolidation of public-sector financial institutions on financing commanded a majority highlights relatively low dependence of enterprises on governmental financial organizations as well as a shrinking role of the public sector as a leading force in the economy.

77.8% respond they "have no concern" about raising funds after privatization of the Shoko Chukin Bank.
About influences of privatization of the Shoko Chukin Bank upon fund procurement
have no concern : 77.8% (7,743 corporations)
have concerns : 7.5% (747 corporations)

As for consolidation of government-run financial institutions, 41.3% look for "advancement of structural reforms" as the highest priority while 22.3% expect "functions as a safety net".

Priority issues on consolidation of governmental financial institutions
advancement of structural reforms: 41.3% (4,111 corporations)
functions as a safety net: 22.3% (2,219 corporations)

Functions as a safety net are required in general, though demands for advancement of structural reforms to realize a small government are even higher. This result indicates enterprises that have borne the pain to date are keeping close watch over developments in reforms of the public sector, and also strongly expect the realization of them.