Press Conference by the Commissioner

(Excerpt)

July 28 , 2003

Q.

The Second Sub-Committee of the Financial System Council held its meeting today and finalized their reports on the appropriate policy for the public funds scheme, capital adequacy ratio and trust business which had been discussed in working groups. What are the views of the Financial Services Agency (FSA) on these reports? In addition, the reports contain some suggestions that require regulatory amendments in the future. What are your reactions?

A.

Each of the three working groups submitted their reports at the meeting of the Second Sub-Committee today.

I understand that various opinions were presented at the meeting but the working group's interim report on trust business was eventually approved as the sub-committee's report after deliberations.

I also understand that the sub-committee agreed to disclose the working group's progress report on capital adequacy ratio. In addition, I have been informed that the working group's report regarding the use of the public funds for financial institutions was approved as the sub-committee's report.

While I believe that the chairperson of the Second Sub-committee has already provided his explanation and the FSA has also explained the various administrative aspects, regarding trust business, we would like to take actions based on the report to submit the necessary bills to the Diet as soon as possible during fiscal 2003.

With regard to the progress report on regulation of capital adequacy ratio, we are planning to continue furthering our investigations based on the report.

Since the report regarding the use of public funds for financial institutions contained a wide range of proposals, we will establish a project team within the FSA to carry out a comprehensive review based on the report.

Q.

Could you give us your thoughts on the project team on public funds scheme regarding the launch date or schedule and the members?

A.

We will consider them shortly but I would like to setup the team as quickly as possible. In any case, I would like to carry out a complete review with participants not only from the Planning and Coordination Bureau but also from other relevant departments such as the Supervisory Bureau.