Press Conference by the Minister for Financial Services

(Excerpt)

December 24 , 2003

Today, a meeting on industrial finance was held with the participation of concerned Ministers.

Basically, Minister of Economy, Trade and Industry, Minister of Finance, Minister of Justice, I and the Governor of the Bank of Japan had previously gathered together under the Chief Cabinet Secretary and held meetings for the purpose of enhancing industrial finance functions, and today, we got a package of concrete measures.

In regard to revitalization of the national economy, our basic position is that action is required on two fronts, that is, to stimulate industry, and to enhance the functions of industry and finance. In the days ahead, we will work on them in unison with the Bank of Japan and other organizations, while flexibly coordinating our efforts with government policies. Particularly, the Financial Services Agency will focus on three areas.

Firstly, in order to diversify financing methods, we will revitalize the financial sector through the development of trust regulations. We will enhance the protection of investors in line with the diversification of investment fund portfolios.

Secondly, we will promote efforts made by small- and medium-sized regional financial institutions, towards financing without overdependence on collateral and guarantee. In association with this, we will revise the Supplement to the Financial Inspection Manual: treatment of classifications regarding credit to small and medium-sized enterprises, in addition to further encouraging relationship banking.

Thirdly, we will promote the enhancement of functions of small- and medium-sized regional financial institutions to support business management of small- and medium-sized enterprises. The purpose is to strengthen the financial and managerial foundations of these enterprises themselves.

I stated that we are committed to making further efforts, while we have already been working in these areas.