Press Conference by Ikko Nakatsuka, Minister for Financial Services

(Excerpt)

(Tuesday, November 13, 2012, from 8:49 a.m. to 8:52 a.m.)

[Questions & Answers]

Q.

Yesterday, at the Financial System Council meeting, a draft plan for new crisis management was presented. However, as the plan requires the financial industry to shoulder losses that may arise, I understand that there is much opposition from the industry. Could you comment on the plan?

A.

This represents an effort by Japan to faithfully reflect the discussion of the FSB (Financial Stability Board) in its financial regulation. There is an appropriate system for deposit-taking financial institutions, but in light of the financial problems that have occurred over the past several years, the idea has emerged that some system or other may need to be created for financial institutions other than deposit-taking financial instituions. Therefore, there is an ongoing discussion.

What such a system should be like is an issue that we have yet to consider, and the Financial System Council is discussing it. So, I would like to carefully watch how the discussion will develop.

Q.

In the United States, the policy of postponing the implementation of Basel III has been revealed. What do you think of that and what action will the Financial Services Agency take?

A.

I am aware of media reports regarding that. I hear that such a policy was announced, but I understand that the United States will respect the agreement on the deadline for the implementation of Basel III and will continue to make efforts to implement the agreement quickly.

In any case, Japan believes that international agreements must be properly honored, so we hope that each country and region will properly implement that agreement and we intend to continue efforts to implement Basel III.

(End)