Press Conference by Ikko Nakatsuka, Minister for Financial Services

(Excerpt)

(Friday, October 5, 2012, from 11:15 a.m. to 11:30 a.m.)

[Questions & Answers]

Q.

Next week, annual meetings of the IMF and the World Bank will be held in Tokyo. Amid the uncertainty over the future of the global economy, other related meetings will also be held. Could you tell me how the Financial Services Agency (FSA) intends to use this opportunity?

A.

I hear that it has been a long time since such meetings were last held in Japan. I expect that the European fiscal and financial problems will be discussed as a matter of course. In addition, we experienced the Great East Japan Earthquake of March 11, 2011, and this will be an opportunity for many people from around the world to look at Japan's recovery from the disaster. A disaster management seminar will be held in Sendai for the purpose of promoting the sharing of the lessons Japan learned - Japan's experiences of the earthquake and recovery from it, and the measures the country has implemented - with many countries. I will attend the seminar and explain the measures the FSA took immediately after the earthquake and our handling of the impact of the disaster thus far.

During the period of the annual meetings, various officials will come to Tokyo from around the world. I hear officials of financial institutions will also gather in Tokyo. We will take advantage of this opportunity to actively participate in discussions on various challenges.

Q.

Are there plans to hold bilateral meetings during this period?

A.

We have received many offers, and I hear that the FSA staff is making scheduling adjustments. I am looking forward to meeting and exchanging opinions with various people.

Q.

What are the fields of your interest that you would like to discuss in bilateral meetings, although that may depend on with whom you will meet?

A.

Of course, I am interested in developments in global financial and capital markets and the European fiscal and financial problems. In addition, I am interested in financial regulatory reforms. Moreover, I hear that people from various countries have expressed strong interest in Japan's experiences of the earthquake disaster, as I mentioned earlier, so I would like to discuss matters related to that.

Q.

Major non-life insurance companies have suspended the underwriting of riders related to riots in China. Meanwhile, they are accepting requests for renewal. How much impact do you expect this will have on Japanese companies operating in China? Is there anything that the government should do in order to deal with this situation?

A.

I am aware of media reports about the matter you mentioned. However, as that concerns the specifics of individual insurance contracts, I would like to refrain from making comments. In any case, generally speaking, I suppose that when insurance companies underwrite insurance, they make judgment after estimating the occurrence rate of insurance events and the extent of damage and - I suppose they secure reinsurance coverage - also examining reinsurance trends and insurance-related risks.

Q.

Minister Shimoji visited the office of the Japanese Bankers Association. Yesterday, he also visited the office of the Regional Banks Association of Japan. I suppose that some sort of study meeting will be held. Did Minister Shimoji consult you about that in advance? How do you feel about the plan to hold such a meeting?

A.

I am aware of media reports about those visits, too. However, Minister Shimoji did not consult me, either before or after the visits. Therefore, I do not have any comment to make. I do not know whether any meeting will be held or what kind of meeting will be held, so I can say nothing about that. I have already explained the FSA's approach. We will spend a certain amount of time on screening the application for new services based on the Banking Act and the Insurance Business Act. After the screening, we will make our decision.

Q.

Does that mean that the meeting planned by Minister Shimoji will not affect the FSA's screening?

A.

As I have already mentioned, we will spend a certain amount of time on screening the applications based on the Banking Act and the Insurance Business Act and then decide whether to grant approval.

Q.

I am Nakazawa from the Real Estate Economic Institute.

Regarding the Bank of Japan's Monetary Policy Meeting and monetary policy measures, is the FSA considering some measure or other to overcome the deflation?

A.

The FSA has various roles and objectives, including keeping the financial system stable, improving convenience for users, protecting users, and facilitating financing. We would like to invigorate the economy by achieving those objectives. We are making efforts to ensure awareness about the FSA's objectives among associations of small and medium-size companies and financial institutions by holding briefings in cooperation with local finance bureaus.

Concerning the government's comprehensive package of measures, the FSA will implement numerous measures while maintaining close cooperation with relevant ministries and agencies.

Thank you very much.

(End)