The second is Daiwa Bank, which is being asked by the regulators to spin off its profitable pension-fund management business, perhaps so that the weak commercial-banking rump can be used as a bridge bank, to tide over customers of defunct regional banks.
But stimulus alone can only provide a bridge while governments address the causes of economic weakness, typically low productivity and weak competitiveness.
Legislation significantly increased the public funds available for bank restructuring, and established a general framework for recapitalizing weak but solvent banks, as well as for dealing with insolvent banks through temporary nationalizations and bridge banks.