Press Conference by the Minister for Financial Services

(Excerpt)

December 17 , 2002

Q.

Today, the general meeting of Hana Credit, which is to acquire Chogin, will be held today, and a Japanese president is expected to be elected. Will the procedures for injecting public funds be initiated if the conditions are met? In this case, problems have been pointed out in relation to failing twice and remitting money unlawfully. How does the Financial Services Agency (FSA) intend to tackle these problems?

A.

Basically, it is our understanding that the final adjustments and decisions are currently being made at the general meeting, including personnel reshuffling and the clarification of personnel management. Therefore, we would first like to wait for the outcome. FSA's response will be to conduct an assessment and make appropriate judgments according to strict procedures in compliance with laws and ordinances, following the performance of the business transfer agreement. In any case, the matter is still in progress, so we would like to keep a close eye on it. If a business transfer agreement is concluded, we intend to assess that closely.

Q.

In regard to the Financial Sector Assessment Program (FSAP) by the International Monetary Fund (IMF), I heard that the IMF had interviewed banks individually including the 4 mega-banks about non-performing loans (NPLs) and so forth. What information have you received from your staff on this matter?

Also, as I think it seems to be quite unusual, please express your view.

A.

Although I have not yet received the latest information, I am aware that FSAP is solemnly being carried out at the moment. It seems to be true that part of the 4 mega-banks have been interviewed, but it is not necessarily special; it is not unusual as such an arrangement is usual in other countries. Since FSAP is a program to be solemnly carried out, I would like to watch how it goes.