Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, Sept. 27, 2011, from 8:29 a.m. to 8:35 a.m.)

[Opening Remarks by Minister Jimi]

Last Wednesday, September 21, I visited Fukushima Prefecture in order to grasp the situation of the areas damaged by the Great East Japan Earthquake and exchange opinions with financial institutions there. I inspected the earthquake-stricken local financial institutions and post offices in Fukushima, Soma and Minamisoma Cities, and I heard from them about the damage and exchanged views with them. I also visited the office of Iitate Village, which is located within the planned evacuation area around Fukushima Daiichi Nuclear Power Station and heard from Mayor Kanno about the village-wide evacuation.

First of all, the representatives of local financial institutions expressed their great appreciation of the Prime Minister's remarks in his policy speech that, “Without the revival of Fukushima Prefecture there will be no restoration of trust and confidence in Japan.” They requested that the government act in ways to honor those words.

People with whom I met during this visit invariably requested that the government quickly proceed with the decontamination of materials contaminated with radiation released as a result of the nuclear power station accident. I was also told that without progress in the decontamination, companies will find it difficult to set goals and forward-looking fund needs will be unlikely to emerge, so I have the impression that the most important thing to do in Fukushima Prefecture is to restore the damage done by the release of radiation.

Meanwhile, I asked them to actively exercise their financial intermediary function and positively consider using the amended Act on Special Measures for Strengthening Financial Functions, which was put into force in July this year, in order to promote the post-earthquake restoration and reconstruction.

The Financial Services Agency (FSA) is resolved to take necessary measures and do its utmost toward reconstruction.

That is all I have to say.

[Questions & Answers]

Q.

I would like to ask you about the G-20 meeting that was held late last week.

The G-7 and G-20 meetings were held in succession amid the continuing turmoil in the financial markets. However, it has been pointed out that it is difficult to send effective messages to the market. What is your view on that point?

A.

Until now, at the meetings of the G-20 Finance Ministers and Central Bank Governors, discussions have been held on how to prevent the recurrence of a financial crisis and strengthen the financial system and, regarding financial regulatory reform, many important agreements have been reached on the full implementation of Basel III.

As was just mentioned in the question, at the G-20 meeting that was held on Thursday, September 22, discussions were held on how to address the vulnerability of the financial system and an important agreement was reached on the need for the euro zone to take appropriate actions to prevent the spread of its crisis.

I believe that it is important that the G-20 countries reaffirmed their resolve to cooperate with each other amid the recent mounting tension in the global financial markets. The FSA will maintain international cooperation in order to ensure the stability of the financial system.

Although we are prohibited from commenting on the discussions held at informal meetings of cabinet ministers, the Minister of Finance reported on the G-20 meeting.

(End)

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