Press Conference by Yuji Yamamoto, Minister for Financial Services

(Excerpt)

October 13, 2006

1.  Minister's Statement

At the Cabinet meeting today, the Minister of Foreign Affairs, the Minister of Economy, Trade and Industry and the Minister of Finance announced economic sanctions against North Korea, namely, the prohibition of all trade with North Korean ships from October 14 to April 13, 2007 under the Foreign Exchange and Foreign Trade Control Law and the Foreign Trade Law.

2.  Q&A

Q.

What kind of action will the Financial Services Agency (FSA) take from here onwards?

A.

In response to these measures, the FSA will encourage financial institutions to establish inquiry counters and the like for loans, etc. to domestic companies, especially with respect to operations involving trade with North Korea, so that there will be no management concerns, and will prompt private financial institutions to make efforts in regards to what related financial institutions can do based on discussions with government-affiliated financial institutions, etc. to the greatest extent possible.

Q.

The Bank of Fukuoka is going to effectively take over Kyushu-Shinwa Holdings according to some press reports. What is FSA's response to this?

A.

Although I cannot comment on individual banks, generally speaking, regional banks should make decisions based on their respective management efforts. In particular, business confidence varies from region to region, so they should exert further efforts in their financial intermediation functions.

(End)