Press Conference by the Commissioner

(Excerpt)

April 26 , 2004

Q.

Last week, the Bank of Yokohama announced that it would return public funds (preferred stock) partly by market sale after conversion into common stock. Repayment of public funds in this form is unprecedented. What is the reaction of the Financial Services Agency (FSA)?

A.

The Bank of Yokohama had made a request for the market sale and redemption by purchase of the Government-owned preferred stocks. As I stated previously, the early recovery of public funds is basically desirable.

We will examine this matter positively, in accordance with the so-called three principles announced by the Deposit Insurance Corporation, that is, (1) avoiding a burden on taxpayers, (2) maintaining stability of the financial system, and (3) maintaining soundness of the bank's management.