Press Conference by Shoichi Nakagawa, Minister of Finance and Minister for Financial Services
January 16, 2009
[Opening Remarks by Minister Nakagawa]
I do not have anything particular to report to you about today’s cabinet meeting or informal meeting of cabinet ministers.
[Questions and Answers]
Tomorrow, it will be one month since the revised Act on Special Measures for Strengthening Financial Functions was put into force. Over this period, has any individual financial institution shown a positive response, such as expressing willingness to increase loans to small and medium-size enterprises (SMEs) in exchange for receiving capital injection from the government?
We took the extraordinary step of putting this act into force in less than one week from its enactment, and I suppose that financial institutions considered various matters toward the end of last year. However, I have not received reports from the FSA about any specific plan for the use of the recapitalization scheme under this act.
If financial institutions remain unresponsive to the scheme, is it possible that the government will consider simultaneous capital injections, depending on the circumstances, as you may have suggested to an industry newspaper.
I have never suggested such a thing.
Do you think such a thing may be discussed in the future?
As for their response, I do not think that they are unresponsive. I talked with bank officials at a gathering of second-tier regional banks yesterday and at a gathering of regional banks last year. At yesterday’s gathering in particular, which was a buffet party, I talked with several people, some of whom praised the measures we have taken, including the enactment of the revised Act on Special Measures for Strengthening Financial Functions. So I do not think that financial institutions have no interest in the recapitalization scheme, although I do not know what you mean by “unresponsive.”
I would like to ask you about a media report today concerning alleged illegal signing of life insurance contracts with corporate customers by agents for AXA Life Insurance and Mitsui Sumitomo Kirameki Life Insurance. Could you tell me about information grasped by the FSA in relation to these cases and about what action, if any, the FSA intends to take?
Frankly speaking, matters like this are covered by our simulated questions and answers. However, as I have not yet received any specific report about these cases and they concern individual companies, I do not know how much I may comment on them at a press conference. In any case, as compliance with the Insurance Business Act and other relevant laws and regulations is the basis of a sound insurance system, we should properly check this.
Am I correct in understanding that the FSA will conduct an investigation?
I have not received any reports, even about that point, so I will carefully consider what answers I can give.
- Laws & RegulationsPage list
- Name of Laws and Regulations(PDF)
- Financial Instruments and Exchange Act
- Recent Changes
- Public Comment
- No Action Letter System
- Procedures concerning Foreign Account Management Institutions
- PrinciplesPage list
- Strategic Directions and Priorities
- Progress and Assessment of the Strategic Directions and Priorities
- Policy Approaches to Strengthen Cyber Security in the Financial Sector
- Financial Monitoring Policy
- AnnouncementsPage list
- Press Conferences
- Press Releases
- Official Statements
- Great East Japan Earthquake-Related Information
- The Earthquake Centered in the Kumamoto Region of Kumamoto Prefecture 2016-Related Information
- List of Institutions
- For those engaging in High Speed Trading
- To Operators of Specially Permitted Businesses for Qualified Institutional Investors, etc.