Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, August 5, 2011, from 8:38 a.m. to 8:42 a.m.)

[Opening Remarks by Minister Jimi]

Good morning.

In the financial markets yesterday, the New York Dow dropped more than 500 dollars. I understand that this is the largest drop since the Lehman shock occurred two years and eight months ago. I presume that concerns over the prospects of the global economy have led to a worldwide stock market decline.

Given the market intervention implemented and the decision made yesterday on further monetary easing, I understand that appropriate monetary and exchange policy measures are being taken. In addition, Japan's financial system is very stable. As the Minister for Financial Services, I will continue to closely monitor the market trends with strong interest while maintaining cooperation with relevant cabinet ministers and the Bank of Japan as I fully recognize that the conditions of the global economy and markets are unstable.

That is all I have to say.

[Questions & Answers]

Q.

How do you expect that the stock market plunge will affect the Japanese economy and financial markets?

A.

Japan's financial system as a whole is sound and stable, as I mentioned. Also, I expect that the direct impact of stock price movements abroad will be limited.

Q.

Behind the stock market plunge are apparently concerns over the prospects of the U.S. and European economies, and there is the view that as long as such concerns are not resolved, exchange market intervention by the government will not have lasting effects. What is your view on that?

A.

While I suppose there are various ways of thinking, it would not be appropriate for me as the minister in charge of the Financial Services Agency (FSA) to offer explanations.

Q.

Media reports say that there has been a series of cases of illegal money transfer using Internet banking services provided by regional banks. How will the FSA respond to that?

A.

I am aware of media reports that there have been cases of illegal access related to Internet banking services provided by some banks.

The FSA requires the implementation of adequate security measures when financial institutions provide Internet banking services under the guideline for supervision, and it is taking such measures as cooperating with relevant ministries and agencies as well as industry groups in public relations activity to prevent illegal use of accounts. We will continue to make efforts to prevent illegal use of accounts while maintaining cooperation with relevant ministries and agencies as well as industry groups.

(End)