Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, October 12, 2010, from 8:37 a.m. to 8:44 a.m.)

[Opening Remarks by Minister Jimi]

I have nothing in particular to report to you today.

[Questions & Answers]

Q.

It turned out that in the G7 (Group of Seven Financial Ministers and Central Bank Governors) meeting that was held recently, the dominating subject was the trend of nations vying to keep their exchange rates or currencies lower, but the Japanese yen still remains at high levels. Can you please give your evaluation of this G7 meeting?

A.

During today's informal gathering with Cabinet ministers, Finance Minister Noda gave a report on this recent meeting of the G7 financial ministers and central bank governors in Washington D.C.  The Chief Cabinet Secretary will probably give a statement on the subject later on, but Minister Noda said that he had stated that Japan intervened in the exchange market partly because of disapproval shared by the G7 towards any sharp exchange rate fluctuations.

The current state of the world's economy was discussed from a variety of other angles as well, but, being a minister responsible for financial matters, I would like to point out that although Basel III currently ranks among significant global topics, it seems that the subject of such financial regulations did not come up in the discussion much.  In the area of international financial regulatory reforms, specific objectives have been presented in forums like G20 summit meetings in a move to prevent another financial crisis and to strengthen financial systems and, as I have just mentioned, there has been steady progress made in this direction in the form of Basel III and other initiatives. Since the Lehman shock, the global financial world has been marked with much instability. However, as I have constantly pointed out, the Great Depression in the U.S. that began in 1929 resulted in the world economy divided into blocks separated by national borders - a situation that, unfortunately, formed a remote cause of the Second World War, according to historians.  Given the unfortunate fate that the world's financial, economic and political worlds suffered in the 20th century in the wake of the 1929 Great Depression, it has become my conviction that that history should never, ever repeat itself.  While, in the current state of affairs, the G7 or G20 countries have their own arguments and are situated in different domestic or economic circumstances, the FSA is committed to continuing to work, as Japan's contribution to international cooperation, to prevent another economic crisis and to ensure enhanced financial systems along the line of, among other things, the G20 declaration.

Q.

Today, the Osaka Securities Exchange's startup market and the JASDAQ over-the-counter market merged to form a new startup market, which seems to me to likely come with various difficulties, given the unstable market conditions and the existence of the TSE's Mothers market.  What is your view on this?

A.

I understand that as of today, on October 12, the Osaka Securities Exchange's Hercules market, JASDAQ and NEO merged to open a new JASDAQ market. President Yoneda of the Osaka Securities Exchange visited us last week to report on this in advance. Generally speaking, I find it desirable that respective exchanges work on developing and operating markets that reflect the needs of issuing companies, or market players, including investors and securities firms, and I hope that, through efforts like this, they will play a greater role as a venue of financing opportunities for companies, while ensuring consumer protection at the same time.

(End)