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

(Tuesday, July 22, 2014, 12:13 pm to 12:34 pm)

[Questions and answers]

Q.

It has been reported that the government is considering reducing the deposit insurance premiums paid by private-sector financial institutions. I also understand that the insurer, the Deposit Insurance Corporation of Japan (DICJ), has set up a commission to discuss the issue. Ultimately, any change will require the approval of the finance minister, so as that minister, what do you think about the implementation of a reduction at this point in time?

A.

No decision to implement a reduction has been made. However, on July 4, the DICJ indeed launched a commission to consider the rate for deposit insurance premiums applicable from Fiscal 2015 onwards. At one time, financial institutions made heavy use of the insurance, but the deficit has now been eliminated, and discussions seem to be moving toward a reduction from the current level of around 0.08%. Nevertheless, I don’t really think adequate reserves have been set aside yet, so I think differences of opinion will emerge.