Press Conference by Kaoru Yosano, Minister of State for Economic and Fiscal Policy and Financial Services

(Excerpt)

August 4, 2006

Q.

The minimum amount of cash transfers requiring identification will be reduced to ¥100,000 from next year onwards, giving rise to concerns over swamped bank tellers and burdens on fees and user convenience. How should financial institutions respond to this?

A.

Japan's ATM system differs from those of the rest of the world in that Japan is probably the only developed country in which ATMs allow remittance, in contrast with ATMs in major countries, which only allow withdrawals. Under these circumstances, remittance of money in cash exceeding a certain amount will have to be done through tellers instead of ATMs in order to prevent money laundering as an international requirement. While it certainly may increase the clerical burden to some extent, it should not have a severe impact on banks' operations on the whole.

Therefore, my understanding is that the recent reports in the press are accurate in content.

Q.

The takeover bid (TOB) by Oji Paper against Hokuetsu Paper Mills has led to intervention by Nippon Paper Group, the second largest company in the papermaking industry. Press reports suggest that it will have a significant impact on hostile M&As in Japan. What are your views on the series of actions that have taken place?

A.

Previously, the main players were Oji Paper, Hokuetsu Paper Mills and Mitsubishi Corporation, which is Hokuetsu Paper Mills' ally. Now that another papermaking company has come into the picture, my attention is drawn to how the situation will unfold. On the whole, I hope that each company will behave in a fair-and-square manner in compliance with TOB rules and other related laws and regulations. The fact that TOB is taking place in such a manner is no surprise. All types of businesses and industries in Japan may undergo reorganization through such an experience, so I hope it turns out to be a fair contest within the scope of laws and regulations.

Q.

There have been reports in the press that Mizuho Bank received a warning from the Fair Trade Commission of Japan (JFTC) for misrepresentation in its advertisements. What is your current understanding and opinion of this matter?

A.

I am aware of such press reports, but the Financial Services Agency (FSA) has not yet received a formal notice from JFTC.

Generally speaking, brochures of banks and other institutions should be written in an easy-to-understand manner. In particular, my impression nowadays is that in real estate advertisements and other advertisements featuring transactions of financial instruments, important information is written in such small fonts that users tend to overlook them. When producing such brochures, they should make sure no misunderstanding arises with respect to the content, and in terms of printing and layout, it is important that they make efforts to properly catch the attention of users and customers.

(End)