Press Conference by Shizuka Kamei, Minister for Financial Services

(Excerpt)

(Tuesday, March 30, 2010, from 10:35 a.m. to 11:06 a.m.)

Q.

Among various issues regarding postal reform, what are the main subjects you would like to discuss at the informal gathering with Cabinet ministers today? For example, is it how the funds should be invested, or what kind of consideration should be given to other private financial institutions (to ensure the equal treatment)?

A.

I intend to broadly seek forward-looking opinions on how to execute the postal business for the future, including how to invest the collected funds, and what form the postal business itself should ideally be in.

Q.

It may be quite difficult in practice to lower the ceiling on the postal savings amount per account once it is raised. Such as it is, wouldn't you consider going slow, say, raising the ceiling in a phased manner?

A.

Rather than doing it "in a phased manner", on one hand, as I stated earlier, there are arguments to "lower the ceiling", while on the other hand, there are arguments to "set no limit no matter what". In these circumstances—as you would have heard my brief explanation earlier—I intend to take measures upon the enactment of the bill while seeking various opinions on this matter...

Q.

Will it be at the time of the enactment of the bill, or at the time when it comes into force?

A.

It will be reviewed once again upon its enforcement.

Q.

Roughly speaking, when is it likely to come into force during next year?

A.

As you will understand, it depends on the progress of practical preparation after the enactment of the legislation. It is a huge organization. Taking this into account, its enforcement will probably be in about half a year's time, or at the latest, in April 2011. The sooner the better. It cannot be left in limbo so long.

Q.

Does it mean that if specific problems arise by then, such as deposits being shifted from so-called regional financial institutions on a massive scale you would not rule out the possibility of lowering the ceiling, for example, from 20 million yen to 15 million yen?

A.

That is why we are doing it in two steps, to see how the situation unfolds... I may appear to be crude but in fact I act with utmost caution. This is a matter governed by Cabinet Order, not legislation, so it would be appropriate for us to decide about it based on our observation of the situation at that time.

(End)