TOKYO, JAPAN - Japan's parliament on Friday approved a law to let the government pump public funds into banks to protect them from the financial crisis.

Japan's banks have experienced mounting losses from the global credit crunch, although their woes are seen as less severe than some of their Western counterparts which are slashing thousands of jobs.

The lower house of parliament, where Prime Minister Taro Aso's coalition holds a majority, approved the law by overriding the less powerful upper house, which is controlled by the opposition.

The opposition had voted against the bill as it pushed for greater regulation on two high-profile banks accused of poor lending practices.

The government first proposed the law to support regional banks from collapsing in the world's worst financial crisis since the Great Depression.

But the government later said that it was ready also to devote public funds to big banks if the crisis worsened.

The United States and European nations have injected billions of dollars into banks in hopes of ensuring a flow of liquidity, the lifeblood of the global economy. -- AFP