Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, April 22, 2011, from 8:42 a.m. to 8:47 a.m.)

[Opening Remarks by Minister Jimi]

At the annual conference of IOSCO, or International Organization of Securities Commission, which was held from April 17 to 21, Mr. Masamichi Kono, Vice Commissioner for International Affairs at the Financial Services Agency (FSA), was appointed as chairman of IOSCO's Technical Committee.

IOSCO's Technical Committee plays the central role in policy planning as it conducts reviews and coordination work concerning international regulatory issues in the field of securities trading. I am very glad that an FSA officer serves as chairman of an important committee like this.

The FSA will vigorously work to improve the soundness and efficiency of global financial markets by making active contributions to international organizations.

That is all I have to say.

[Questions & Answers]

Q.

I have two questions. First, in relation to the nuclear power station accident, share prices of Tokyo Electric Power and other electricity companies have been showing wild swings. How do you expect this will affect financial institutions?

A.

Of course, we are keeping a careful watch on that with strong interest. At today's meeting of cabinet ministers (on the economic situation), a wide variety of opinions were expressed. The importance of Tokyo Electric Power in the market is well-known and the impact on the bond market must be taken into consideration. Therefore, although I have no intention of intervening in this matter, which concerns a private-sector company and which is a prerogative of the Ministry of Economy, Trade and Industry, the FSA, as part of the government, is keeping a careful watch on that with strong interest.

Q.

In relation to the power shortage, companies are struggling hard to save electricity. What impact will there be on financial institutions?

A.

The FSA has requested financial institutions to achieve a universal electricity-saving target of 25%. Although the Keidanren and industries have apparently sparred with each other over various matters, the basic financial system is very important, so I understand that banks and industries are wracking their brains as to how to save electricity as much as possible in this emergency situation while maintaining the essential functions.

Q.

There are concerns that the quality of financial services could decline as it is difficult to keep unmanned ATM counters open.

A.

While a final plan has not been fixed yet, I expect that problems like that will be addressed appropriately in the context of the overall balance, as it is a very important mission of the FSA to ensure convenience for depositors and protect depositors.

Q.

The introduction of the corporate finance accountant system has been put off. What are the problems that make it difficult to introduce this system? Also, what will the FSA do for people who are waiting for an opportunity to gain practical experience after passing the examination?

A.

As you know, as this bill was drafted by the government, it was adopted upon a cabinet decision, and as the minister in charge, I submitted it to the Diet. As the Diet, which is the highest organ of state power and is the sole law-making organ, made revisions, I will of course take that very seriously.

After listening to the opinions of various business sectors as well as political parties and groups with a calm mind once again, I will search for the best option.

Q.

Do you mean that you have not given up on this bill?

A.

As you know, the revision indicated that we should continue to consider this matter in the future. As this is the Diet's decision, I will respect it.

Q.

Mitsubishi UFJ Morgan Stanley Securities is expected to report a huge amount of losses. What is your view on that, and how will the FSA respond to it?

A.

As this is a matter concerning an individual company, the FSA will refrain from making comments.

Thank you.

(End)