Press Conference by Shizuka Kamei, Minister for Financial Services

(Excerpt)

(Friday, May 28, 2010, from 8:48 a.m. to 8:52 a.m.)

[Questions & Answers]

Q.

Regarding the very severe administrative order that was issued against Incubator Bank of Japan (Nihon Shinko Ginko) yesterday, which subjects it to the suspension of part of its operations, please give us the reason behind your decision on this treatment, as well as your views on that.

A.

Up until the decision, the FSA had been conducting inspections over the long term and also had been receiving reports from the bank. As a result of examining in detail the goings-on thus learned, we issued yesterday, as announced by the FSA Staff, the order to the bank by which the FSA tries to ensure the bank would properly fulfill its social function as a financial institution. I expect the bank to follow it in good faith.

Q.

Seeing that the bank appears to have tried to evade inspection, please let us know your current stance as to whether or not to file charges with the police /prosecutor.

A.

We are currently in the process of examining specifically the circumstances of what has happened and we have not yet reached any conclusion, but I can tell you that we are examining the circumstances thoroughly and in detail. We will act according to what is found as a result of that examination.

(End)