Press Conference by Ikko Nakatsuka, Minister for Financial Services

(Excerpt)

(Tuesday, October 23, 2012, from 10:51 a.m. to 11:09 a.m.)

[Opening Remarks by Minister Nakatsuka]

Today, a cabinet meeting was held.

From October 17 (Tuesday) to 20 (Saturday), I visited Laos and Singapore. On October 19 (Friday), I attended the first ASEAN Ministerial Meeting on Women in Vientiane, Laos, and discussed how to develop the framework for cooperation, including the organizing of ministerial meetings on gender equality in East Asia with cabinet ministers of the ASEAN countries, China, and South Korea. We agreed on the importance of cooperation toward gender equality in East Asia, and regarding the East Asia Gender Equality Ministerial Meeting that started under Japan's initiative, it was decided that China will host a fifth meeting next spring. We also agreed to hold discussions about how to further enhance the framework for cooperation. In light of the results of the latest meeting, Japan will continue to make active contributions to the effort toward gender equality in East Asia.

In Laos, I also met with the minister of finance and the central bank's governor. In Singapore, I met with the managing director of the Monetary Authority of Singapore, among other officials. As Japan needs to make efforts to actively harness the Asian growth in the financial sector, I exchanged opinions with them about the Asian financial situation and agreed with them that bilateral financial-sector cooperation should be promoted so that both Asia and Japan can achieve growth. In light of the results of the meetings, we will make vigorous efforts to implement the Comprehensive Strategy for the Rebirth of Japan in the financial sector.

[Questions & Answers]

Q.

Last week, Prime Minister Noda issued instructions regarding an emergency economic package. What instructions did the prime minister give you with regard to the financial sector? Is there anything that the Financial Services Agency (FSA) has to work on?

A.

At the extraordinary cabinet meeting held on October 17 (Wednesday), Prime Minister Noda instructed that the implementation of measures in the priority fields of the Comprehensive Strategy for the Rebirth of Japan, such as “green, life and agriculture, forestry and fisheries” should be moved up. He also instructed us to work out an economic package centering on economic revitalization that does not rely on fiscal measures, including early restoration and reconstruction after the Great East Japan Earthquake, disaster prevention and mitigation measures preparing for large-scale disasters, regulatory reform, and promotion of private-sector loans and investments.

Among measures to invigorate private-sector finance, priority is placed on strengthening support for the turnaround of small and medium-size enterprises (SMEs) in light of the scheduled expiry of the SME Financing Facilitation Act. We believe that we should give guidance to financial institutions through inspection and supervision so as to ensure that they facilitate the supply of funds and further exercise their consulting functions even after the expiry of the SME Financing Facilitation Act.

In addition, we will shift emphasis to the support of the turnaround of SMEs and implement our policy package so that a sufficient amount of time can be spent on achieving true business management improvement. In accordance with the Prime Minister's instructions, we will consider the details of necessary measures while maintaining cooperation with relevant ministries and agencies.

Q.

In a speech made on October 21 in Kagoshima, Minister for Postal Reform Shimoji expressed hopes that Japan Post Group will be allowed to provide educational endowment insurance, housing loans, and new universal financial services by December. That appeared to indicate that approval will be granted by December. Could you tell me about the status of coordination within the government on this matter?

A.

Regarding the status of coordination within the government, I understand that the postal privatization committee is discussing various matters. For my part, it is my job to decide whether or not to grant approval after screening applications for a certain period of time.

Q.

Is December significant as a scheduling deadline?

A.

I cannot answer that question, as I have not heard about that directly from Minister Shimoji.

Q.

From November, the scope of loans eligible for 100% loan guarantee by credit guarantee associations will be narrowed. Although this matter is under the jurisdiction of the Small and Medium Enterprise Agency, I will ask you about it in relation to the economic package's objective of facilitating financing. Do you think that the scope should be narrowed as scheduled?

A.

Regarding that matter, we must cooperate with the Small and Medium Enterprise Agency in various ways. In any case, how to take risks is important for the loan guarantee system. Within the government, we will hold further discussions as to what is the appropriate method of risk sharing for the purpose of facilitating financing.

Q.

Are you considering the option of not narrowing the scope from November?

A.

My stance is as I told you just now.

Q.

Today, a media report said the FSA has decided not to take administrative action in a suspected case of insider trading regarding which the Securities and Exchange Surveillance Commission recommended the implementation of an administrative action in March. Could you tell me what you can about that?

A.

I would like to refrain from commenting on a specific case. At any rate, we are following procedures in accordance with laws and regulations. If a violation of laws and regulations is recognized, we will take strict actions. Otherwise, we will deal with this case in accordance with laws and regulations.

(End)