Press Conference by the Minister for Financial Services

(Excerpt)

March 30 , 2004

Q.

There is only a year left until the restart of the ''pay-off'' scheme. Could you tell us your current thoughts? Also, please describe potential obstacles if there are any.

A.

The restart of the ''pay-off'' scheme is necessary because it essentially requires depositors to select banks, and the banks to manage their businesses firmly in a tense but healthy environment. Japan used to have such a system. However, it is also true that conditions have to be met for such a system.

We hope to meet the conditions by firmly proceeding with the Program for Financial Revival against major banks, and by steadily implementing the Action Program concerning enhancement of Relationship Banking Functions during the intensive improvement period against small- and medium-sized and regional financial institutions. We also need to thoroughly inform the general public, and more specifically, properly make technical preparations including establishment of data processing systems for aggregation of deposits held by the same depositor.