Press Conference by the Minister for Financial Services

(Excerpt)

14 December, 2001

Q.

These days, stock prices of major banks are hovering at the lowest level. What do you think about this situation?

A.

Recently, the stock market as a whole has been in a slump including stocks of major banks. As I always say about stock prices, the market fluctuations are affected by various factors. So I have refrained from making a comment on stock prices because any fluctuations are inherent within the stock market. All of the fluctuations are voices of the market. The interim performance and full-term forecasts of banks were so unfavorable, and the market is responding to these objective facts, I suppose.

Furthermore, various expectations inherent in market participants are reflected in such situation. Anyway, we are steadily advancing disposal of bad loans, while carefully watching conditions of the capital adequacy. I have said that major banks are able to meet international requirements.

I hope market participants to stay calm and see the situation from a more objective perspective.

Q.

Why do you think the fall continues?

A.

I think it cannot be denied that the stock prices are affected by the inherent dynamics of the market and the seasonal factors.