Press Conference by the Minister for Financial Services

(Excerpt)

August 26 , 2003

Q.

Was your plan to travel abroad approved by the Cabinet today?

A.

Today, the Cabinet endorsed my plan to visit the Hong Kong Special Administrative Region and the Shenzhen Special Economic Zone over a three-day period from August 28.

Q.

The itinerary clashes with the next Cabinet meeting. Is the trip of an urgent nature in any way? What is the purpose and the meaning of this trip with such timing?

A.

Since I assumed the post of Minister for Financial Services, there have been very few opportunities to travel overseas. My recent visit to the U.S. was the first time in one and a half years. As the Minister for Financial Services, I would like to exchange opinions with the parties concerned especially in the financial centers of Asia, such as Hong Kong and Singapore. As they are always paying a great deal of attention to the Japanese financial sector, I had been longing for the opportunity to give them a proper explanation. I would like to visit more places during this trip, but the schedule allows me to be away only for 2 nights, so I decided to visit Hong Kong.

Q.

Will you go to Shenzhen as well?

A.

Yes, I will visit the Shenzhen Special Economic Zone. I have given thought to the relationship with special zones, so it would be a good opportunity for me to learn about the special economic zone. I would like to ask the parties' opinions especially about the relationship between the real economy and the monetary economy.

Q.

In Japan, accounting standards are directly reflected in supervision standards, unlike those in the United States. Considering that problems like those of Resona have arisen, some accountants claim that the lack of independent regulations for supervision constitutes negligence by the supervisory authorities. What is your view and understanding of the question of whether there should be independent regulations for supervision?

A.

Well, there are standards for supervision. We regard that the best standard for supervision is to comply with fair accounting practices. We regard that the accounting standards are extremely reliable in any case, and that making judgments based on those standards would minimize confusion. Rather, it would be unnatural to have standards for supervision that are far detached from such fair accounting practices.