Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, October 28, 2011, from 8:27 a.m. to 8:31 a.m.)

[Opening Remarks by Minister Jimi]

I do not have anything particular to report to you.

[Questions & Answers]

Q.

Regarding the case of Olympus, the company is facing a very difficult situation as foreign investors have expressed various opinions. What do you think of the current situation?

A.

As the Olympus case is a matter concerning an individual company, basically, I would like to refrain from making comments in light of the relationship between the market and the Financial Services Agency (FSA) as an administrative organization.

However, generally speaking, if the fairness and transparency of the market is to be ensured, it is essential, as you know, that each listed company exercise governance sufficiently and make appropriate information disclosure. From that viewpoint, it is very important to aptly respond to requests for information disclosure from both domestic and foreign investors.

The FSA, in cooperation with the Tokyo Stock Exchange and other organizations, will continue efforts to ensure appropriate exercise of governance and information disclosure by each listed company.

Q.

What do you think of the risk that other countries suspect that there may be problems with the governance of Japanese companies?

A.

If there is such a tendency, it is very regrettable. However, this is basically a matter concerning an individual company. As I mentioned earlier, it is essential that the Japanese market be fair, transparent and vigorous, so the FSA's role is, if I may use a sports analogy, to build the sumo wrestling ring. How sumo wrestlers (listed companies), thrill the audience (investors) depends on the companies' governance, vitality and capabilities. While sumo wrestlers may exercise their power to the full, there are off course rules. Rules must be followed.

Q.

The Bank of Japan has taken an additional monetary easing measure. What is your view on that?

A.

I have high regard for the decision. Yesterday, after the Monetary Policy Meeting, I received a phone call from BOJ Governor Shirakawa.

Q.

The yen rewrote its record high for the third consecutive day. Do you think that the government and the BOJ have taken adequate measures to deal with the strong yen?

A.

This is a matter under the jurisdiction of the Minister of Finance. As you know, the leaders of the 27 EU countries and the 17 euro-zone countries apparently reached an agreement late night the day before yesterday after more than 10 hours of talks. Japan has high regard for that agreement. As I stated in the Diet, Europe itself should decide what to do with its own affairs. After that, the Japanese cabinet should offer cooperation where possible, as the stabilization of the European financial and economic situations is in Japan's national interests.

Q.

Do you mean that there is nothing more that the government and the BOJ can do?

A.

As you know, yesterday, the Minister of Finance made various statements at the (House of Councillors') Committee on Financial Affairs, and I think that various policy tools are naturally available.

(End)