Aiming to increase liquidity in Japan's capital markets, Bankers Trust New York Corp. has begun arranging stock splits that let Japanese banks and corporations sell off cross-holdings.

"Around 40% of common stock in Japan is cross-held by banks and corporations," said Masayuki Yasuoka, managing director and senior country officer for Bankers Trust in Japan. "But until now, banks have been unable to sell any of it, because of the destabilizing effect it could have on the relationship."

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