TOKYO -- Japan's Financial Services Agency will ease restrictions on banks investing in companies that are more than 10 years old, making it easier for startups operating in industries that take longer to develop commercial products to gain access to capital, Nikkei has learned.
At present, banks are only allowed to hold stakes of over 5% in companies that are less than 10 years old through subsidiaries specializing in investment. The Financial Services Agency is expected to amend the Banking Act by June 2024 after soliciting opinions from the public. Prime Minister Fumio Kishida has made invigorating Japan's startups a pillar of his government's economic policy.
