Press Conference by the Commissioner

(Excerpt)

December 22 , 2003

Q.

The budget for the new fiscal year sets forth an increase in staff by 110 people. What is your opinion on this?

A.

For the organization and personnel of the Financial Services Agency (FSA), we had requested developing a system necessary for realizing the Basic Policies for Economic and Fiscal Management and Structural Reform 2003, such as building a stronger financial system and promoting structural reform in securities markets. In this regard, I acknowledge that we gained the understanding and approval of the Ministry of Finance and other authorities to increase our staff by 110. When realized, we will thoroughly engage in financial administration under the enhanced organization.

Q.

The so-called ''three-piece package'', referring to the tax system requested by the FSA aimed at promoting the disposal of non-performing loans (NPLs), was excluded from the tax reform policy outline. What is your position on future action?

A.

In the tax reform policy outline by the ruling parties, the three-piece package was made a subject of further examination. As we are strongly aware of the need of a tax system for NPL disposal, we will conduct further studies in consideration of the tax reform policy outline.

Q.

Today's press conference is the last one of this year. Looking back, there were various events this year, such as the recapitalization of the Resona Bank and the Ashikaga Bank. Please sum up the financial administration of the year or introduce any impressive cases that you dealt with so far.

A.

In short, the year was characterized by the steady implementation of concrete measures in response to the Program for Financial Revival last year. We were able to steadily implement various measures this year, including those for the NPL problem, in accordance with the Program.