Press Conference by the Minister for Financial Services

(Excerpt)

4 December, 2001

Q.

Next, I would like to ask about bank stock prices. Banks' drastic interim financial statements and prospects had once suggested that banks revealed all the unfavorable factors, but after Enron's failure, it appears that bank stocks seem to have begun assessing where the next bottom may be. Including effects of Enron's failure on Japanese banks, what do you think about the condition of the Japanese banks?

A.

Enron's failure is an a regrettable incident, but its impact on Japanese banks is limited, and does not seem to force banks to revise downward their prospects for the March-2002 fiscal year. Some newspapers had reported such views, and we also take the same view. I think, however, that banks' severe forecast reflect their strong will to resolve the NPLs problem. I hope you to understand this situation.