Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, March 25, 2011, from 8:37 a.m. to 8:41 a.m.)

[Opening Remarks by Minister Jimi]

I do not have anything particular to report to you.

[Questions & Answers]

Q.

I will ask you about Mizuho Bank's system problem. Are you considering taking any measures against the bank, including an administrative measure?

A.

As the banking business has a public nature and needs to serve public goods, trust is its foundation. In light of this, it is very regrettable that Mizuho Bank's network system broke down in the wake of the earthquake disaster. Although I hear that the system is working properly today, this problem has caused people considerable inconveniences.

Therefore, we will take strict action after receiving a formal report on the investigation of the problem.

Q.

Does the “strict action” include an administrative measure?

A.

It would not be appropriate for me to comment on that with prejudgment. However, this problem is very regrettable given that Mizuho Bank is a major bank with a public nature and is strongly required to serve public goods at this time of emergency when tens of thousands of people have been killed by the earthquake and tsunami disaster.

Q.

The emergency that you mentioned now, namely the Great East Japan Earthquake, inflicted damage worth 15 trillion to 25 trillion yen, according to the government's estimate. How do you feel about the scale of the damage, and what measures are you going to take as the Minister for Financial Services.

A.

As the Minister for Financial Services, I am aware of that estimate, which is based on various assumptions. With regard to the financial sector, the impact is fairly limited. The Bank of Japan's financial network system has been working properly and the stock market has been kept open. We will continue to carefully monitor the situation, including those matters.

Q.

Regarding Mizuho Bank's system problem, I understand that the bank's president reported to you that the system would be fully restored on March 23, namely the day after your previous press conference. However, the problem has continued. How do you feel about Mizuho Bank's failure to keep the promise it made to you.

A.

It is very regrettable. Mizuho Bank's president said that he was scheduled to hold a press conference one day earlier. I told him to consider this matter well, although not face-to-face. Doing what should be done is the responsibility of a state minister elected by the people.

Q.

In relation to Mizuho Bank, although you said that it is regrettable that the system problem occurred in the wake of the earthquake and tsunami, it is possible to reason that the system broke down exactly because extraordinary transactions occurred in this emergency situation. Will you take that into consideration?

A.

We will conduct a formal investigation, including on that matter. I have been told that transfers of donation money were particularly concentrated at a few of Mizuho Bank's numerous branches, leading to the system breakdown.

(End)