Press Conference by the Commissioner

(Excerpt)

November 17 , 2003

Q.

Please give your overall evaluation of Resona's Business Revitalization Plan announced last week. Also, two types of public funds have been injected into Resona based on the Financial Function Early Strengthening Law and the Deposit Insurance Law. Specifically, what kind of plan to accumulate funds for the repayment of public funds next autumn?

A.

First, I highly evaluate the efforts by Resona's new management team compiling a concrete plan for the Intensive Revitalization Period within a short time. Also, I expect that the plan will be implemented steadily. Specifically, we hope Resona will challenge implementing various measures towards establishment of a new business model, and increase its corporate value, because the Intensive Revitalization Period is an important stage for Resona's V-shaped recovery.

Second, as for funds for the repayment of public funds, it is important and hoped to prevent the increase of public burden by surely repaying the public funds, regardless of whether they are injected based on the Deposit Insurance Law or the Financial Function Early Strengthening Law. I recognize that both shemes are based on the same point of view institutionally. Resona was injected public funds and transferred to a new management system, so it must have been in a transition period. In the transition phase, Resona's mission was to establish a solid plan in the Intensive Revitalization Period. I hear that Resona will review the plan, including the new business model, as its semiannual settlement of accounts as of end-September 2004. I expect the future figure of the funds to repay public funds will be showed in a different way at that time.

Specifically, I hope that Resona will basically establish a plan as other capital-injected banks after the Intensive Revitalization Period. In any case, Resona will review the plan, including the new business model, in the interim result as of end-September 2004. Based on the situation, I want to examine it carefully, while discussing it with Resona closely.