Press Conference by Yuji Yamamoto, Minister for Financial Services

(Excerpt)

October 17, 2006

Q.

Yesterday, the governor of Tochigi Prefecture made requests to you about the selection of the acquirer of Ashikaga Bank. What is your perception of his requests, and how do you intend to make use of them in future processes?

A.

The governor, the chairperson of the prefectural assembly, the head of the special committee and elected members of the House of Councillors and the House of Representatives engaged in the request campaign extremely enthusiastically--even Diet members who could not turn up in person either passed on their messages or reported that they would be absent. In particular, I had the opportunity to listen to opinions of those who are involved in corporate activities in the region. In a nutshell, many of them expressed their expectations for sustained and sufficient financial intermediation functions in the region, and their enthusiasm was impressive.

I also informed the governor that there will be an opportunity to listen to his requests in future processes. We will keenly conduct preparations of the selection of an acquirer in the weeks ahead, as we are listening to opinions of the working team regarding the basic terms and conditions.

Q.

Sumitomo Mitsui Financial Group announced that it has finished paying back all public funds today, meaning that all so-called mega-banks have completed paying back public funds. However, there seems to be some issues left in major banks, such as not being able to pay corporation tax yet--what are your thoughts on this?

A.

This is a monumental, delightful milestone towards our goal. We hope banks will gain vigor and further improve their international competitiveness and their credibility among customers, to establish a sound financial market.

(End)