Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services

(Excerpt)

(Friday, October 28, 2016, 8:53 am to 8:55 am)

[Questions and answers:]

Q.

The Financial System Report released by the Bank of Japan on the 24th notes that real estate loans by financial institutions have pushed still higher, and that these are to be closely monitored in future. It appears that loans by regional financial institutions in particular have increased. Could I ask your opinion on this point?

A.

We know that the Bank of Japan has released its Financial System Report. Similar comments were made when loans for land purchases led to the so-called “land bubble” as the US dollar went from 240 yen to 120 yen after the Plaza Accord in September 1985, and just before the failure of Lehman Brothers began in the 2000s, but the number of loans now is far fewer than at those times. The circumstances differ by region and by regional bank – It is occurring in certain regions – but we do not believe that we are seeing the harbingers of a bubble. In any case, we need to keep an eye on developments in this regard.