Press Conference by the Minister for Financial Services

(Excerpt)

12 November, 2002

Currently, the Financial Services Agency (FSA) is working on publicizing a work schedule for the Program for Financial Revival within this month. While working on the schedule, we intend to implement measures that are readily available one by one.

Based on this approach, the first meeting of the Strategic Headquarters for Industrial Revival and Employment was held a short while ago, following a cabinet meeting. I urged the relevant ministers to make efforts in three areas, in view of strongly promoting the revitalization of businesses and industries, in conjunction with the reform of the financial system.

The first area is the development of a favorable environment for corporate revival, including the tax system, investment and loan schemes, and special treatment under the Commercial Code. The second is responding to the excess-supply problem, such as the development of guidelines for the excess-supply problem and the corporate revival standards. The third is the development of guidelines on prompt business revival. I requested the ministers to endeavor in these areas.

I intend to request the Japanese Institute of Certified Public Accountants (JICPA) to properly respond to the Program for Financial Revival this evening. I will continue making efforts to swiftly implement the Program for Financial Revival in the days ahead.

On the other hand, the Monthly Economic Report will be released today. As there will be Quick Estimation (QE) and the like tomorrow, I intend to administer policies thoroughly towards consolidation aimed at strengthening the financial sector and the macro economy.

Q.

You just stated that you would request JICPA to respond. What do you intend to request, in concrete terms?

A.

The Program for Financial Revival states that various assessment problems and so forth will be addressed. In particular, I intend to request them to specifically examine two things: the acceptance of Discount Cash Flow (DCF) type methods for provisioning; and the review of the criteria of average remaining period of loans to figure out provisioning.