Press Conference by the Commissioner

(Excerpt)

April 7 , 2003

Q.

The guideline recently publicized, we presume, is intended as a measure for stricter control over financial institutions. What effect do you expect of this guideline?

A.

The guideline recently announced is divided into two parts. One of them concerns stricter supervision under the Early Strengthening of Financial Function Law, and the other aims at introducing a clearer and stricter criterion regarding conversion from common stock to preferred stock. The fundamental intention underlying the guideline is to enhance the governance of the capital injection banks by closely coordinating these two parts.

The Financial Services Agency expects them to carry out their plans for restoring sound management primarily and step up their efforts for operational rationalization, profitability boost and so on.