Press Conference by Yuji Yamamoto, Minister for Financial Services

(Excerpt)

March 27, 2007

Q.

I would like to ask some questions about the Noto Peninsula earthquake. One question is how the earthquake has so far damaged financial institutions. While I heard that the local finance bureau chief has already asked for appropriate financial measures, I would like to know how the Financial Services Agency would respond. Would you give your basic policy or the like?

A.

First, fortunately, the earthquake that occurred on March 25 with the epicenter in waters off the Noto Peninsula has little damaged financial institutions. Their branches have operated without any problem. In response to the government's decision to apply the national disaster act to the victims, the Financial Services Agency, through the Hokuriku Local Finance Bureau and the Bank of Japan, has asked for flexible handling of deposit withdrawals and other major measures for the convenience of victims. Let me make some general comments on disasters. Since financial services are a basic social infrastructure and very important for the people's livelihood, the FSA has specified crisis management measures regarding disasters in its supervision guideline and the like, encouraging financial institutions and the like to address this matter. We would like to see financial institutions make appropriate responses in consideration of the importance of disaster responses under the leadership of their management. Regarding the Bank of Japan, the Hokuriku Finance Bureau chief made such notice to each bank on March 25.

Q.

Regarding the selection of the top post at the Tokyo Stock Exchange, a media report today stated that Mr. Saito, a former president of the Industrial Revitalization Corporation of Japan, would succeed Mr. Nishimuro as TSE president. Would you give us some comments on the plan for Mr. Saito to take up the top TSE position after working in the securities industry and the IRCJ? In addition, would you discuss the expectations you've placed on the new TSE chief and the exchange's shift to a holding company system.

A.

I am aware of the media report you cited. The appointment should be decided on and announced by the TSE based on its business management policy. In principle, the FSA would like to refrain from making comments on this matter.

But I would like to make some general comments. There may be various comments on the IRCJ. Overall, however, the IRCJ has gained very positive ratings regarding the planned achievement of surplus assets for the state coffers and secured employment for reconstructed companies and benefits to regional economies. Personally, achievements of this kind of organization should be preserved as Japan's know-how or assets. The achievements and leadership of Mr. Saito, who had led the IRCJ, may be appreciated as great along with the IRCJ itself. I also believe his earlier performances in the securities industry were excellent. In this sense, I believe that Mr. Nishimuro has selected Mr. Saito as suitable for the position in view of his own business policy and future TSE duties. In general, I would like to express my high respect Mr. Nishimuro's courageous decision.

(End)