Press Conference by the Minister for Financial Services

(Excerpt)

January 27 , 2004

I would like to report one thing.

Today, we are going to give advance notice for the upcoming on-site special inspection to major banks for the year ending March 31, 2004.

In the practice of assessing the borrowers with reconstruction plans, we have scrutinized the appropriateness of these plans primarily with the efforts of the Special Team for Examination of Reconstruction Plans. Along with the upcoming special inspections, the team continues to examine effectively.

Q.

There are some news reports that UFJ Bank has documents for the reference of asset assessments other than those presented to inspectors. Would you tell us the facts?

A.

I have read the reports, but let me refrain from making comments on the matter as it concerns the inspection of an individual financial institution.

Q.

UFJ Bank's stock price is falling, which is claimed to be partly due to the reports on UFJ Bank.

Admitting that you adopt your stance as ever that the facts concerning to an inspection of an individual financial institution cannot be discussed, I fear that this kind of uneasiness cannot be eliminated without a comment from you. What is your view on this matter?

A.

We have to refrain from making comments not only on individual inspections but also on individual stock prices as well.

As news reports based on speculation give rise to serious problems, we hope you all the reporters respond calmly to the situation.

Q.

When will the on-site special inspections actually begin?

A.

The dates have never been stated in the past. We are going to give advance notice and confirm the details with responsible staff. We would let you know any information if the need arises. In any event, we will conduct the inspections in a strict and somber manner.