Press Conference by the Minister for Financial Services
(Excerpt)
8 October, 2002
- Q.
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In a magazine interview, you stated you would not employ the idea that large companies or major banks are too big to fail. As there is a lot of speculation in the market in regard to this, could you please explain once again what you meant by that?
- A.
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As you just mentioned, in a magazine interview, I did state that it is not appropriate to employ the ''too big to fail'' assumption in general terms, not as a matter of any specific banks or any specific companies. Although some media have reported that I was talking about the consolidation of major banks based on this interview. They cause huge misunderstanding and the way in which they report may generate turmoil in the market. I have not made any decisions yet; I just started to engage in discussions eagerly in the Project Team in order to decide what to do, and I have not said anything specific as such. As I am extremely mindful about refraining from discussions that intentionally and simply associate a general idea with a policy decision, and your cooperation will be highly appreciated in this regard.
- Q.
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Do the current stock prices have an impact on financial institutions? Also, are measures against stock prices feasible as an option? Please elaborate on these matters.
- A.
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The impact of stock prices can be discussed in various ways, assuming various timings and impacts. However, I personally believe the Japanese economy has an extremely strong potential, and I am confident that the implementation of policies that we are seeking would push up the stock prices to a considerable degree. From my point of view, the current stock prices are in the preparation stage for making a leap forward.
Therefore, it is not so easy to say as to how the daily fluctuations affect financial institutions. I'd rather work hard to set up a situation in which Japan's stock prices would rise to the proper level, by firmly crystallizing the policies to be implemented, serving the Japanese people and the market to gain a proper understanding and making the Japanese economy demonstrate its potential abilities.
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