Policy Statement by Ikko Nakatsuka, Minister of State for Financial Services, at the Committee on Financial Affairs of the House of Representatives
November 2, 2012
I, Ikko Nakatsuka, have been appointed to serve as Minister of State for Financial Services. I appreciate your support.
Today, I would like to make a few remarks on the current financial administration.
(Current Situation surrounding Japan's Financial System)
First, I would like to begin by speaking about the current situation surrounding Japan's financial system.
Japan's financial system as a whole is sound and stable.
Recently, there have been concerns over a global economic slowdown against the backdrop of the European debt problem, among other factors. We will, with strong interest, keep a close watch over the impact that domestic and foreign economic and market developments may have on Japan's financial system.
In addition, to strengthen the global financial system, we will continue to actively contribute to international discussions and cooperate with other countries in proceeding with reforms in the international arena.
(Facilitation of Financing)
Next, I would like to talk about the facilitation of financing.
While the Act on Temporary Measures to Facilitate Financing for SMEs (Small and Medium-size Enterprises), etc. is scheduled to expire at the end of next March, it will continue to be financial institutions' duty to make efforts to modify the terms of loans and ensure the smooth provision of funds.
Even after the expiry of the Act on Temporary Measures to Facilitate Financing for SMEs (Small and Medium-size Enterprises), etc., the Financial Services Agency (FSA) will continue to encourage financial institutions, through inspection and supervisory processes, to make efforts to modify the terms of the loans and ensure the smooth provision of funds.
I have clarified this inspection and supervisory policy for the period after the expiry of the Act by recently announcing a statement on November 1.
The FSA will utilize every possible opportunity to ensure that SMEs and other borrowers are aware of this policy.
In addition, to improve the management of SMEs in the true sense, starting in the current fiscal year, the FSA has shifted emphasis to the business rehabilitation of SMEs and is implementing measures included in a policy package adopted in April this year, in cooperation with relevant ministries and agencies.
The FSA will also continue to do its utmost to implement relief measures related to the “double loan problem” that is afflicting the disaster victims in the areas devastated by the Great East Japan Earthquake.
(Efforts to Ensure the Credibility of the Financial and Capital Markets)
Next, I would like to mention efforts to ensure the credibility of the financial and capital markets.
With regard to the problems related to institutions undertaking the management of pension fund assets, which have come to light in the case of AIJ Investment Advisors Company, Ltd., the FSA has recently announced measures to prevent a recurrence of similar incidents.
With regard also to the cases of insider trading related to the public offering of new shares, the FSA will consider and implement measures to prevent a recurrence of similar incidents.
(Measures to Invigorate the Economy)
Finally, I would like to talk about the financial measures aimed at invigorating the Japanese economy.
Regarding the financial sector, the Comprehensive Strategy for the Rebirth of Japan, which was decided by the cabinet this July, calls for efforts to strengthen the functions of the financial and capital markets, and to enhance the financial industry's growth potential and competitiveness, with a view to providing necessary funds for new growth industries and markets.
To establish Japan as Asia's main financial center, the FSA will implement measures such as creating a comprehensive exchange, in cooperation with relevant ministries and agencies.
In addition, last month, the Prime Minister instructed cabinet members to formulate economic measures to overcome deflation as early as possible and to invigorate the economy.
The FSA will do its utmost to implement such measures to ensure that the financial sector plays its expected role in putting the Japanese economy on the path to economic growth.
I have stated some of my views on the current financial administration as the Minister of State for Financial Services. With your kind support, I will do my utmost to carry out financial administration. I would appreciate the understanding and cooperation of Chairman Igarashi and all the other members of this Committee.
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