Policy Statement by Shozaburo Jimi, Minister of State for Financial Services, at the Committee on Financial Affairs of the House of Representatives
I am Shozaburo Jimi, Minister of State for Financial Services. I appreciate your continued support and encouragement.
Today, I would like to state my thoughts on the current financial administration.
(Current situation surrounding Japan's Financial System)
First, I will explain the current situation surrounding Japan's financial system.
Since the middle of the year, due to concerns about Europe's fiscal and financial problems, and the weakness of the recovery of the U.S. and European economies, uncertainty over the future course of the global economy has been growing. Based on this background, global moves are spreading toward risk aversion, leading to instability in financial and capital markets, including foreign exchange.
Under this situation, we will brace ourselves and take appropriate measures to ensure the soundness of the financial system, and to enable a smooth and active exercise of the financial intermediary function.
(Response to the Great East Japan Earthquake)
Next, I will explain our response to the Great East Japan Earthquake.
The Earthquake, which occurred on March 11, wreaked enormous damage on Japan. All the people concerned have continued to work together for restoration and reconstruction from the Earthquake.
Soon after the Earthquake, the Financial Services Agency (FSA) encouraged financial institutions to take appropriate and flexible actions in light of the actual circumstances of the disaster areas. Given that financial services are required to play a very significant role in restoration and reconstruction from the Earthquake, the FSA will continue to encourage financial institutions to proactively take appropriate measures to accommodate the needs of people hit by the Earthquake.
The FSA will also encourage financial institutions to positively consider making use of the “Act on Special Measures for Strengthening Financial Function,” which was amended and executed in this July.
Regarding the so-called “double debt problem,” we will do our utmost to support the reconstruction of the disaster areas through measures such as assisting the operation of the “Guidelines of Workout for Restructuring Debt Owed by Individual Debtors.”
(Facilitation of Financing)
Now, I will talk about the facilitation of financing.
The business conditions and financing situation of small and medium-size enterprises (SMEs) continue to be severe as a result of the Earthquake, the appreciation of the yen, and other factors. Under these circumstances, financial institutions are required to provide maximum support for client companies' efforts to improve their management by actively exercising their consulting function.
The FSA will continue to make all-out efforts to facilitate financing for SMEs so as to ensure that financial intermediary services are provided in a manner that accurately matches SMEs' needs.
(Global Financial Regulatory Reform)
Finally, I would like to mention developments related to global financial regulatory reform.
So far, in light of strengthening the global financial system, international agreement has been reached on the development of a new framework for bank capital and liquidity based on the direction set out at the G20 summits and at other related international conferences. In addition, various measures, as well as the reform of the over-the-counter derivatives market, are being developed.
Japan believes that it is essential to sufficiently take account of the potential impact of the reform on the real economy by setting a sufficient period of transition when we progress those reforms, while developing a robust financial system in the medium to long term. Building on this perspective, we will continue to actively contribute to international discussion and cooperate with other countries in proceeding with the reforms in the international arena, as well as the Cannes Summit in November.
In these remarks, I have stated some of my ideas as the Minister of State for Financial Services. I am resolved to continue to do my best in policy management with your kind support. I would appreciate the understanding and cooperation of Chairman Kaieda and all the other members of this Committee.
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