Press Conference by the Commissioner

(Excerpt)

24 June, 2002

Q.

In relation to the issue concerning the transfer of Ishikawa Bank and Chubu Bank, which failed this March, what is the situation progressing in regard to these banks? Also, we learnt that an American investment fund held a press conference at 16:30 today, announcing its eagerness to serve as an acquiring bank of Ishikawa Bank. What is your view on this group?

A.

As you may know, the financial administrator of Ishikawa Bank, as is for Chubu Bank, is persevering in negotiations particularly with local financial institutions. As reported in the local newspapers, I have been informed that the foundations are being laid for the Banks to be taken over by local banks and credit associations.

Having said that, I was informed today that a foreign fund had announced its eagerness to serve as an acquiring bank, but I should not comment on the matter because I have not yet been informed of the details.

In any case, as it is concerned with the acquiring bank of a local bank, the best scenario for it would be to revive as a bank enjoying the confidence of the local community and the local financial community. As the Deposit Insurance Corporation of Japan has been engaged in negotiations with local financial institutions to this day from such a standpoint, we would like to closely observe their outcome first.

Q.

Your statement seems to imply that it might go against the grain with local banks if a foreign investment fund became the acquiring bank. Is this your view?

A.

No, I did not say that it would go against the grain. The wider the choice, the better. It is better to have more possibilities, including such parties.

Up to this point, however, the Deposit Insurance Corporation of Japan, which is serving as the financial administrator, has been intensively working particularly on local financial institutions, including credit associations. Recently, I have been informed that the foundations are being laid. I simply meant to say that it is our priority to closely observe and strengthen these foundations. Will we have to take another step after that? If the answer is yes, we will, as a matter of course, consider institutions regardless of whether they are domestic or foreign, and we will not exclude foreign funds when considering the potential candidates for the acquiring bank.