Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, March 29, 2011, from 8:50 a.m. to 8:54 a.m.)

[Opening Remarks by Minister Jimi]

Good morning. I do not have anything to report to you.

[Questions & Answers]

Q.

Regarding Mizuho Bank's system problem, you said that you would wait for the full restoration of the system. Do you think that the system has been fully restored? Also, in relation to the notice of an inspection that was sent yesterday, what is your thinking on an administrative measure that the Financial Services Agency (FSA) may take as a supervisory agency?

A.

On Monday, March 28, the FSA notified Mizuho Bank that it will conduct an on-site inspection based on the Banking Act. This inspection will be conducted in order to strictly examine the cause of the system problem that occurred on March 15 and the bank's response to it, as well as how to prevent the recurrence of a system problem.

As to whether the system has been fully restored, Mizuho Bank has made clear that although the system has been mostly normalized, it will continue efforts to resolve the lingering effects of the problem and conscientiously deal with customers. The FSA will strongly instruct the bank to quickly resolve any lingering effects on transactions and ensure appropriate response to customers.

Q.

I suppose that there is strong public interest in the results of the inspection.

A.

We will conduct a careful inspection, as I said earlier. In addition, I hear that among FSA inspectors, there are people with a very high level of expertise in the field of computer and other technologies, so I would like to assemble an appropriate team to conduct the inspection in accordance with the law.

Q.

In the inspection, what will be the focus of your interest?

A.

While the system problem was continuing, I summoned Mizuho Bank's president for a hearing. According to the president's explanations, put simply, the system broke down because numerous transfers of donation money had been concentrated at a few branches. We will carefully examine the system itself, including with regard to such circumstances. The financial settlement system is very important, and Mizuho Bank, as one of Japan's megabanks, is operating internationally. The trust of the Japanese people and the people around the world is the most important element of the financial business. There is a very grave social responsibility involved in the breakdown of a financial settlement system that has occurred at a megabank at the time of an unprecedented disaster involving an earthquake, tsunami, and a nuclear power station accident simultaneously, so I hope that an appropriate inspection will be conducted, including on the fundamental cause of the system problem.

(End)