Press Conference by the Minister for Financial Services

(Excerpt)

23 October, 2001

Q.

In consideration of the bankruptcy of credit associations and credit unions last week, some members of the business community are calling for the further postponement of the restart of the pay-off system. What is your opinion on this? Also, what is your understanding of the extent to which regional banks and regional financial institutions are prepared for the restart of the pay-off system?

A.

Following the completion of the round of inspections, some credit associations and credit unions need to make certain decisions before the restart of the pay-off system, in consideration of not only their prospects but also the introduction of mark-to-market accounting. We are conducting in consultations, taking such concerns into account.

In short, from the administration's point of view, there has been progress in the preparation work, assuming that the pay-off system will be restarted.