Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister for Financial Services

(Excerpt)

(Tuesday, November 5, 2013, 9:15 am to 9:27 am)

[Question and Answer]

Q.

We have heard that the Financial Services Agency will begin inspections today of three megabanks, including Mizuho Bank. Given the discovery that Mizuho Bank failed to deal with its loans to criminal syndicates, what items will be given priority when examining that bank?

A.

There are certain inspection items applicable to all three megabanks, so basically the inspections are designed to verify the efforts across each bank in such areas as legal compliance and risk management. As part of the inspection of Mizuho Bank, we will also be reviewing the adequacy of the business improvement plan submitted by Mizuho Bank to determine if it is properly addressing the issues at hand.

Q.

What approach will be taken in this inspection with respect to the fact that untruthful responses were given in the Financial Services Agency’s earlier inspection?

A.

That was quite unacceptable behavior and, in this one, we will be carefully scrutinizing Mizuho Bank’s approaches to addressing the problems noted.

Q.

Will additional personnel be assigned – if that is the right way to put it – to carry out the inspection of Mizuho Bank and the Mizuho Group? In light of the fact that Mizuho Bank has submitted a business improvement plan as well as presented a misleading report, we have heard that extra personnel will be brought in for this inspection. Could you please tell us about how long this inspection will continue and, given the possibility that new administrative actions will be needed, when these actions will be announced?

A.

We are not presently at a stage where we can say anything in detail about the number of extra personnel or the length of the inspection. Circumstances will differ entirely depending on the problems – whether they are only those matters that have already surfaced or more problems will come to light – so I cannot comment at the current stage.

(End)