Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, October 26, 2010, from 8:30 a.m. to 8:36 a.m.)

[Questions & Answers]

Q.

Firstly, on the topic of foreign exchange: what are your views on the unstoppable surge of the Japanese yen even after the G20 Finance Ministers and Central Bank Governors' Meeting? Are you considering taking any new measures at the government level?

A.

As you know, the G20 Finance Ministers and Central Bank Governors' Meeting was held the other day, where member nations reaffirmed that competitive currency fluctuation on an international scale-especially currency volatility-is undesirable. With this in mind, a supplementary budget was decided by the Cabinet again today. In the case of Japan, considering that the exchange rate reflecting the fundamentals of the economy should be determined by the market, economic measures against the strong yen have formally been set forth in the supplementary budget; in this context, I believe they will be effective.

What was decided today had been stated in the declaration of the G20 meeting, and the supplementary budget was decided formally today in response to that. While foreign exchange is basically under the jurisdiction of the Minister of Finance, that is my view as a politician serving as the Minister of State for Financial Services and the official responsible for corporate finance.

Q.

Yesterday, there was a barrage of press reports that Kirayaka Bank in Yamagata Prefecture and Sendai Bank in Sendai City are in the final negotiation stage towards management integration. What are your thoughts on this, considering that the negotiation is taking place amid longstanding suggestions that there are too many banks in the Tohoku region?

A.

I would like to refrain from commenting on this matter as it is up to individual financial institutions. Generally speaking, however, the main business areas of the two banks are in their respective prefectures, so in the sense that they do not overlap, the merger of the banks based on their own judgments at a time like this is welcome news not only to users, but also in consideration of the stability of management in this day and age.

Thank you for listening.

(End)