Press Conference by the Minister for Financial Services

(Excerpt)

June 4 , 2004

Q.

The Basic Policies for Economic and Fiscal Management and Structural Reform 2004, which constitute Koizumi Cabinet's basic strategy, suggest the formulation of the ''Program for Concentrated Consolidation of Financial System (tentative name)'' for the purpose of supplying the world's highest level of financial functions. What kind of program is expected to be completed?

A.

While the Program for Financial Revival which we have been working on is an extremely important program, it is reactive in that it focuses on the disposal of non-performing loans.

Not all problems can be solved by the disposal of non-performing loans. It is necessary to create an environment in which top-notch financial services can be offered by improving profitability. We plan to discuss this matter broadly within the Financial Services Agency (FSA) first, and we expect young staff at FSA to participate in the discussion as well. It is also an issue that should be broadly discussed by the general public.

The formulation of the Program for Financial Revival was subject to strict time constraints, as I had been ordered by the Prime Minister to compile its basic policies within about a month of assuming office. The situation we have today is different to that. We still have almost a year to terminate the Program for Financial Revival, that is, to achieve the targets. In the meantime, we plan to firmly engage in broad discussions.