Press Conference by the Minister for Financial Services

(Excerpt)

October 7 , 2003

I want to make one comment on the ''Plans for enhancing functions of Relationship Banking''. By the end of August, the Financial Services Agency (FSA) received the Plans from 626 small- and medium-sized regional financial institutions. Subsequently, we confirmed the details of the Plans submitted to the FSA through interviews and other means, and we have been working towards their completion.

Based on the results, we will report and examine the Plans submitted by the financial institutions at the meeting with Director-Generals of each Local Finance Bureau which will be held today. The summary results of the Plans will be publicly announced this evening. The staff of the FSA will explain the details when announced.

Q.

In regard to the characteristics of measures for enhancing functions of Relationship Banking which you just mentioned, regional banks are to dispose of non-performing loans by revitalizing small- and medium-sized enterprises and by activating the local economy during the ''Intensive Improvement Period''. In considering these characteristics of the Plans, how do you evaluate them, in terms of whether their goal can be achieved?

A.

There are 626 Plans, each of which addresses individual cases. Therefore, it is difficult to evaluate them as a whole, but I have an impression that each regional financial institution is strengthening activities aimed at operating harmoniously with a local community.

In response, as we need to firmly promote the Relationship Banking framework, we would like to discuss these matters actively at the meeting with Director-Generals of each Local Finance Bureau, including above points.