Press Conference by Yuji Yamamoto, Minister for Financial Services

(Excerpt)

July 17, 2007

[Minister's Statement]

Good morning. I would like to report on the Cabinet meeting. The Chairman of the National Public Safety Commission made remarks on a FY 2007 white paper on police. The Minister of Internal Affairs and Communications made remarks on a FY 2007 report on public corporations. Mr. Watanabe, Minister for Regulatory Reform, made remarks on public corporation reform. The Minister for Disaster Management made remarks on the Niigata Prefecture Chuetsu-oki earthquake and Typhoon No. 4. The Minister of Internal Affairs and Communications made remarks on damage and countermeasures pertaining to Typhoon No. 4 and the earthquake with the epicenter in the waters off the Chuetsu Region of Niigata Prefecture. The Chairman of the Public Safety Commission made remarks on police responses to Typhoon No. 4 for 2007 and the Niigata Prefecture Chuetsu-oki earthquake. Minister Amari made remarks on responses to Typhoon No. 4, the heavy rains on the seasonal rain front, and the FY 2007 Niigata Prefecture Chuetsu-oki earthquake. The Minister of Land, Infrastructure and Transport made remarks on responses to Typhoon No. 4. The Minister of Defense also made remarks on the typhoon and the earthquake. The Prime Minister made remarks on the Niigata Prefecture Chuetsu-oki earthquake and Typhoon No. 4. Mr. Akagi, Minister of Agriculture, Forestry and Fisheries, reported on the results of his European trip. The Prime Minister made remarks on the funeral for the late former Prime Minister Kiichi Miyazawa. The Prime Minister gave instructions on speedy disaster response, including full cooperation in the calculation of restoration costs as a precondition for serious disaster recognition.

[Questions and Answers]

Q.

Regarding yesterday's Chuetsu-oki earthquake, the Kanto Local Finance Bureau and the Niigata Branch of the Bank of Japan have asked financial institutions to help the affected people withdraw deposits. Does the Financial Services Agency or the Minister intend to take any additional measures? How do you view the present situation?

A.

Firstly, I would like to pray for the souls of people who died in the earthquake. Secondly I would like to express my sympathy for the people whose lives have been affected by the earthquake. The Prime Minister visited the damaged site yesterday. I believe that the government should be united under the leadership of the Prime Minister in providing assistance and restoration in the earthquake-affected regions. I have heard that although some financial institutions have been forced to suspend operations due to blackouts, most financial institutions have restored branch operations on schedule without any trouble today. Buildings connected with the Izumozaki and Kashiwazaki fisheries cooperatives were affected. Automatic teller machines cannot be used at some outlets of the Kashiwazaki Shinkin Bank, the Niigata Daiei Shinyo Kumiai, the Niigata Labor Bank and the Kashiwazaki Agricultural Cooperative. Among financial institutions, the Kashiwazaki Fisheries Cooperative is alone believed to have suspended operations due to blackouts. It is desirable for financial institutions to take appropriate measures meeting needs of regional earthquake victims. I hope that they will implement the necessary measures under their respective business decisions. The Head of the Kanto Local Finance Bureau's Niigata Local Finance Office and the Bank of Japan Niigata Branch Manager have issued emergency requests to financial institutions, a typical response to this kind of natural disaster. Financial institutions have been asked to identify deposit withdrawal requestors as depositors and accept their deposit withdrawals even if they have lost their deposit certificates or account books and to accept thumbprints in the absence of seals in dealing with customers. Depending on conditions, financial institutions have been requested to accept withdrawals of premature time deposits or loans backed by time deposits. These requests have been made in writing. Similar written requests have been given to securities companies, and life and non-life insurance firms. I hope that financial institutions will take measures that meet the region's needs in future. The Financial Services Agency would like to promptly implement precision measures should any problems emerge. That's all I have to say about our responses to the disaster.

Q.

This week, a court ruling will come on the Murakami Fund case. Minister, what are your views on the effects or changes that the Murakami Fund problem represents to the economic world?

A.

I would prefer to simply examine the ruling that will be given by the judicial branch. I believe that the behavior of those who invest large amounts of money have been put to test by society. I am aware that people in all regions, strata and fields are divided over whether such behavior should be accepted or not. However, I view the behavior in question as a crime. In this sense, I hope that market stakeholders and participants will conduct business based on sound practices so as to prevent this kind of behavior from being repeated and thus affect the reputation of those who soundly manage investment and conduct transactions.

(End)