Press Conference by the Minister for Financial Services

(Excerpt)

12 March, 2002

Q.

Yesterday, Chairman Imai of the Japan Federation of Economic Organizations (Keidanren) stated ''The March crisis has become a thing of the past,'' based on the recent rise in stock prices. On the other hand, there is the view that the disappearance of the crisis may cause stagnation in the progress of the reform including the removal of non-performing loans (NPLs). Although there are various views on the March crisis, as a minister, how do you view the situation?

A.

I don't deny that I've been aware of and taken interest in the March crisis but I don't think that a major crisis will occur particularly in March. There has been too much speak of the word ''crisis,'' as if the last one year or so had been in crisis. I have long felt that such a word should be used only when it is considered as appropriate based on more composed information.

I mean, irrespective of such a thing, the most important thing for us is to do what we have to do in a proper and steady manner, such as the removal of NPLs and the decrease of banks' stock holding levels. In my opinion, ''no slackness, no letup'' is the most important thing.

In any case, it goes without saying that the credibility of Japanese financial institutions or the financial system needs to be recovered. Compared with this primary proposition, I'd rather say whether or not they can successfully pass the year end is a minor issue and we are in the midst of a situation where we have to continue striving to do our best for the time being.