Japan privatizes postal service

Forming the world's largest commercial bank in the process. Japan has started the privatization of its postal service, BBC reported on Monday. According to the report, Japan Post is being split into four firms to run its banking and insurance operations, mail deliveries and post offices under a 10-year plan.

Japan Post's banking unit has 400 million accounts and assets of 349.8 trillion yen ($3 trillion; £1.5 trillion), the world's largest, the report said.

The banking and insurance units should float on the stock exchange by 2010.

The report said privatization process is the result of reforms started in 2005 by then Prime Minister Junichiro Koizumi.

Japan's government now aims for all four of the new post office companies to be made fully independent by 2017. It hopes the move will increase competition in the country's banking sector, BBC reported.