Japan’s largest bank, Mitsubishi UFJ, plans to begin attracting investment into defence-industry companies, reversing its previous reluctance to finance the sector.
To this end, the bank is expected to establish criteria and rules for such financing in the near future, the business daily Nikkei reports.
According to the newspaper, a final decision is expected by the end of the year, when the Japanese government is also planning to approve new policy documents on national security and the strengthening of the country’s armed forces.
Nikkei expects other major Japanese banks to follow Mitsubishi UFJ’s lead, potentially bringing more private capital into defence production. The financing could include loans to companies participating in Ministry of Defence tenders for the development and production of weapons, as well as firms manufacturing related components and assemblies.
Financing for the production of military-use drones and satellites will also be considered.
By Jeyhun Aghazada
