Provisional translation

Press Conference by Yoshimi Watanabe,Minister for Financial Services


June 3, 2008

[Opening Remarks by Minister Watanabe]

Good morning.

A number of system problems have occurred recently, causing inconveniences to customers. This is a regrettable situation for the Financial Services Agency (FSA) as well. In light of this situation, PDFwe issued today a written alert-a copy of which has been distributed to you-asking that the management of financial institutions that intend to implement computer system integration or upgrading take necessary action.

In elements of the social infrastructure, financial institutions' computer systems are highly public in nature, as they constitute the core of the financial settlement system. I would like individual financial institutions to strive to establish proper systems for managing computer system risks under the active leadership of their management.

The FSA will follow up on this matter within the framework of its regular inspection and supervisory activities. For details, please consult the Banks Division I of the Supervisory Bureau.

This is all I have to tell you.

[Questions and Answers]


Concerning this matter, The FSA is requesting that financial institutions take action with regard to five items. Was this request issued on the premise that administrative actions would be taken where this request is not followed?


As I told you earlier, the request was issued as an alert in response to the recent series of system problems.


Regarding a case of insider trading involving a former Nomura Securities employee, two suspects were indicted yesterday. Cold you explain to me again your view of this case and of the responsibility of Nomura Securities?


As Nomura Securities is conducting an internal investigation, I would like to wait and see its findings before commenting. We will determine what needs to be done thereafter.


The bill for the reform of the civil servant system passed through the House of Representatives last week and is expected to be enacted upon passage through the House of Councillers as early as this week. Although you already discussed this on the day of the bill's passage through the House of Representatives, could you tell me again how you feel about the developments related to this bill during the current Diet session?


I do not know when this bill will be enacted. At the beginning of this year, I suppose that few people expected it to be enacted during the ordinary Diet session. Considering this, it is surprising that we have achieved as much as we have. I believe that this has been made possible by the unity within the Liberal Democratic Party and within the ruling coalition achieved under the strong leadership of the Prime Minister and by the constructive compromise reached under the leadership of the lawmakers. Behind all this has been a strong feeling among general public that the reform of the civil servant system should not be left in limbo. I believe that it is important to reform the civil servant system in ways that will dispel the air of distrust among the people and regain their trust in the system.


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