Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, December 2, 2011, from 9:26 a.m. to 9:32 a.m.)

[Opening Remarks by Minister Jimi]

Yesterday, I explained the purpose of the postal reform bills at a session of the House of Representatives' Special Committee on Postal Reform, as you know. This was the first time for me to explain the purpose of these reform bills in the one and a half years since I took office as the minister in charge. At the cabinet meeting and informal meeting of cabinet ministers, I expressed my appreciation to the relevant people and organizations. As the agreement signed by Prime Minister Noda and Mr. Kamei, leader of the People's New Party, stipulates that full-fledged efforts should be made to enact the bills during the current Diet session, I requested that each minister issue relevant instructions so as to ensure the bills' enactment.

That is all I have to say.

[Questions & Answers]

Q.

The day before yesterday, the central banks in Japan, North America and Europe announced measures to facilitate the provision of dollar funds. Yesterday, the interest rate on funds raised in the money market declined. How do you view the effect of those policy measures and the current market condition?

A.

As was mentioned now, the measures announced at this time are expected to facilitate smooth provision of dollar funds, particularly in Europe, so I believe that appropriate measures have been taken to ensure the stability of the global financial markets. While Japanese financial institutions have no difficulty raising foreign-currency funds, the Financial Services Agency (FSA) will continue to carefully monitor the situation while maintaining cooperation with relevant ministers and the Bank of Japan.

Q.

Nikko Asset Management, which was acquired by Sumitomo Trust and Banking, obtained approval for the listing of its shares, and yet it is reportedly planning to postpone the listing. What do you think of the sluggish initial public offering activity?

A.

I am aware of media reports about that. However, the FSA would like to refrain from commenting on this matter, which concerns the management judgment of an individual company. Generally speaking, a change in major shareholders of a financial institution is an important supervisory issue, so we will carefully monitor future developments.

Now, let me answer the question(*) that I received in the previous press conference from Mr. Namikawa of Toyo Keizai, who is here today. He asked me about the absence of the announcement of the financial results of Incubator Bank of Japan in the fiscal first half. The Second Bridge Bank of Japan, which has taken over the business operations of Incubator Bank of Japan, is not a listed company, so I understand that it is taking the procedure to announce its financial results in the fiscal first half within three months from the end of the fiscal first half in accordance with the Banking Act. The FSA will continue to monitor the situation and take appropriate supervisory actions.

If Mr. Namikawa was referring to the absence of the announcement by Incubator Bank of Japan, whose business operations were taken over by the Second Bridge Bank of Japan, our answer is that since Incubator Bank of Japan is not a listed company, I understand that it is taking the procedure to announce its financial results in the fiscal first half within three months from the end of the fiscal first half in accordance with the Banking Act. The FSA will continue to monitor the situation and take appropriate supervisory actions.

As the financial account-book for the fiscal first half was closed at the end of September, the deadline for the announcement of the financial results is the end of December. I suppose that the banks are making efforts to prepare for the announcement of the financial results. That is apparently the current state of affairs as we are still at the beginning of December.

* Mr. Namikawa's question in the November 29 press conference:

It has been decided that Incubator Bank of Japan will be sold to Aeon Bank. Even though a formal decision has been made, the financial results in the first half have not been announced. Have you heard anything about that? Some people say that initially, the announcement was scheduled to be made earlier.

Q.

Regarding the Olympus case, former Olympus President Woodford expressed an intention to launch a proxy fight. I presume that foreign market players are growing increasingly interested in this case. What is your view on that?

A.

As this is a matter concerning an individual company, I would like to refrain from making comments.

However, generally speaking, I understand that when a shareholder makes a proxy solicitation, he or she must provide clear explanations so that other shareholders can make appropriate judgment, while the company must also fully explain such matters as its management policy.

(End)

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