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

(Excerpt)

(Friday, June 9, 2017, 6:00 pm to 6:03 pm)

[Questions and answers:]

Q.

The Shoko Chukin Bank’s business improvement plan was submitted today, and President Adachi has told the press that he will not be resigning to take responsibility. Please give us your opinion on the plan and tell us what approach will be taken with the inspection in future.

A.

I am aware that a business improvement order was issued on May 9, and that the Shoko Chukin Bank has accordingly presented a number of processes for reforming its operations. Once the inspections currently underway have been completed, further action must be demanded from the Shoko Chukin. A number of explanations have emerged, such as that this was done to expand the Shoko Chukin’s share, but the biggest problem in my opinion is that these special credit lines were based from the outset on a mistaken perception of the original intent. Thus, while I am not sure how this should be understood or what led to this perception, it is clear that the point was missed thereafter but, at the moment, I do not know if things turned out this way due to a lack of awareness on a systemic basis or on an individual basis. I am certain that the Ministry of Economy, Trade and Industry will do a thorough job and, as we share competency in this matter, we must keep a close eye on the steps to be taken in this regard.