Press Conference by Kaoru Yosano, Minister of State for Economic and Fiscal Policy and Financial Services

(Excerpt)

July 7, 2006

Q.

On Wednesday, the subcommittee of the Research Commission on the Finance and Banking Systems of the Liberal Democratic Party (LDP) largely agreed to reduce the interest rate cap for the money-lending industry to the level set forth in the Interest Payment Restriction Law. What are your views on this, in consideration of the revision of relevant bills in the future?

A.

There are three laws which relate to this matter, namely, the Law Concerning the Regulation of Receiving of Capital Subscription, Deposits and Interest on Deposits, the Interest Payment Restriction Law and the Moneylending Control Law. The Law Concerning the Regulation of Receiving of Capital Subscription, Deposits and Interest on Deposits and the Interest Payment Restriction Law are both under the jurisdiction of the Ministry of Justice, whereas the Moneylending Control Law is under the jurisdiction of the Financial Services Agency (FSA). Both the LDP and the New Komeito have determined their policies to a certain extent. As some members are requesting that a feasibility study be conducted for this, the FSA will properly research and examine the best way to reflect the ruling parties' intentions in the laws with the cooperation of the Ministry of Justice.

As there are a couple of options available in regards to the ways it can be done, we need to look into the respective merits and demerits of the options.

In any case, the LDP reached an interim conclusion three weeks earlier than we expected, so we intend to accelerate the pace of our work.

(End)