Press Conference by the Minister for Financial Services

(Excerpt)

February 17 , 2004

Q.

The insurance clause to compensate for potential losses in the event that a bank's loans go bad has been criticized so much, despite your view that all the wisdom available at the time was exercised to create the clause within a limited time. How will you utilize this experience in future financial administration?

A.

It is little difficult to answer to the question on how we could make use of it in the future. At the time, there was no legal framework for sharing so-called secondary losses, and the clause was developed within that context.

Q.

What about now?

A.

We do have one now, of course. As there was no legal framework for sharing secondary losses in the Financial Revitalization Law, it has been incorporated into the Deposit Insurance Law.