The world's largest bank by deposits, Japan Post, has unveiled plans to use its assets to spur regional development in Japan and expand into overseas lending.
The government will review the structure of the country's post office and devise a business model for the different post office companies with an aim to more effectively use the Y178,200bn ($1870bn) in deposits at Japan Post Bank to revitalise regional economies. At the end of March, the companies under Japan Post had a massive Y305,900bn of assets, according to its financial statements, with Japan Post Bank - the saving vehicle of choice for much of Japan's middle class - and Japan Post Insurance accounting for Y303,100bn of those assets.
The post office could provide new services in healthcare, pensions and education, and the expansion plans could lead the post office to reduce its purchases of US treasuries and Japanese government bonds, which currently represent 80% of its assets and has been the traditional way of contributing indirectly to the country's economic development.
