Press Conference by Shizuka Kamei, Minister for Financial Services

(Excerpt)

(Friday, April 16, 2010, from 8:42 to 8:52)

Q.

The other day, the European Commission (EC) of the European Union (EU) compiled a report on extra taxes imposed on financial institutions… The issue of how much of the costs incurred in dealing with the failure of banks should be borne by financial institutions is likely to be raised at the upcoming meeting of G20 Ministers and Governors as well. What stand should Japan take? What is Japan's position on this?

A.

In Japan banks hardly pay corporate tax. They are not paying corporate tax at the moment. Given that they are in such a sorry state, I strongly hope the financial world attains robustness so that it can properly fulfill its role. If they have enough time to protest aggressively based on their belief that the conditions might become slightly more favorable for their competitors (such as the Japan Post Bank), they should be making utmost efforts in running their own businesses.

(End)