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

(Excerpt)

(Tuesday, January 21, 2014, 11:08 am to 11:21 am)

[Questions and answers]

Q.

I have a question concerning the use of dormant deposits. This is currently being discussed by the LDP and New Komeito, but I think there are issues such as the fact that some believe caution should be exercised in the use of the assets of depositors, and the way the administrative burden on financial institutions should be handled. What do you think about using dormant deposits for projects that would benefit the public?

A.

This discussion about using dormant deposits hasn’t suddenly emerged now. Accounts for which there have been no withdrawals or deposits for ten years or more, i.e. deposits that are idle, have long been treated as dormant deposits. Such deposits amount to around 85 billion yen (every year), of which 35 billion is paid back, with around 50 billion remaining. And I aware the media report mentioned how those funds might be used. However, it is not my understanding that the LDP and New Komeito coalition has decided to go ahead with this. Nevertheless, 50 billion yen, for example, in dormant deposits is a large amount of money, and if it is going to be used to fund various activities, the understanding of the public as a whole must be obtained. Before thinking about how that 50 billion yen should be used, a system must be considered for obtaining this understanding. I don’t feel we can just say that because there is 50 billion yen spare, we can hand it over to the Ministry of Health, Labour and Welfare, and I don’t feel it’s the type of question that the Financial Services Agency can give a quick answer to on its own.

(End)