Press Conference by the Commissioner

(Excerpt)

May 17 , 2004

Q.

A year has passed since an application was made to recapitalize the Resona Bank. How do you evaluate the efforts made by Resona's management team? Also, please describe what kind of efforts the Financial Services Agency is expecting the management team to make.

A.

The meeting of the Financial System Management Council regarding the Resona Bank took place exactly one year ago from today. During this one-year period, the new management team made various efforts in the Intensive Revitalization Period until March 2005. Specifically, it conducted financial reform in the interim result as of end-September 2003 to thoroughly eliminate future risk factors. It has also been making efforts, including focusing on low cost operations through cost-cutting aimed at reforming the earnings structure, loans to individuals and small and medium-sized enterprises and housing loans. It is also actively working on expanding smaller branches as a challenge towards a new business model. In that sense, we appreciate that solid efforts are being made towards recovery, under the new management team.

As for the future, we hope the Resona Bank will continue to implement thorough management reform under the new management team and promptly realize sound management.