Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, December 20, 2011, from 10:31 a.m. to 10:36 a.m.)

[Questions & Answers]

Q.

Yesterday, Kim Jong Il, the General Secretary of North Korea's Workers' Party, died. How do you feel about his death and what impact do you expect on the Japanese economy and financial market?

A.

This news has a considerable impact on Far East Asia. Yesterday, in response to the news, a meeting of relevant cabinet ministers was held in Japan. I was one of the members at the meeting who were appointed by the Prime Minister. As the Prime Minister mentioned in his instructions yesterday, collecting information is important on occasions like this. In particular, it is important that Japan closely shares information with South Korea, China, the United States and other relevant countries.

Moreover, given the nature of North Korea that you know, it is necessary to prepare for an emergency based on collaboration between various government organizations and cooperation with the private sector. Regarding the financial sector in particular, stock prices in Japan, Shanghai and Hong Kong have not dropped much, although South Korea stock prices declined slightly. As for foreign exchange rates, the dollar appreciated slightly in line with its traditional status as a safe haven in an emergency. At the meeting of relevant cabinet ministers, I reported that the impact has been minor so far.

Q.

Let me ask you just one more question. Olympus has reportedly started preparing for increasing its capital by around 100 billion yen. How do you feel about that?

A.

Although there has been a media report like that, I hear that in accordance with the Tokyo Stock Exchange's disclosure rules, Olympus has formally announced that it has not made any decision on specifics.

Q.

The FSA has ordered Citibank to partially suspend business operations. This was the third administrative action taken against that bank. Do you have any comment on the FSA's responsibility as the supervisor?

A.

It is very regrettable that Citibank, which is a foreign financial institution, has become the subject of our administrative action for the third time. Naturally, domestic and foreign companies should be treated equally, and we strongly call on Citibank to follow Japanese rules in Japan. As Citibank is a globally well-known financial institution, it is very regrettable that it has become the subject of our administrative action for the third time.

Q.

Given that Citibank has failed to make improvement following the previous two administrative actions, leading to the third administrative action, don't you think that the FSA should bear responsibility as the supervisor?

A.

Let me consider that. It is very important to protect Japanese consumers. It is very important for financial institutions to protect consumers and maintain consumers' trust by conscientiously fulfilling their duties, so it is essential to regard that as the basic point.

(End)

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