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Regarding Suruga Bank, the FSA is currently conducting inspection to find the overall picture of the issue, and that Suruga Bank’s third-party committee, made up mostly of attorneys investigating a number of issues, will be releasing its report this afternoon. While we do not yet know the full story, please give us, based on what you have ascertained thus far, your views and comments on the issues occurred at Suruga Bank.
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Since Suruga Bank’s third-party committee will not make its announcement until this afternoon, I have no comment on that at this stage. However, generally speaking, it is essential for banks to protect customers and users while complying with laws and regulations. Banking business need to be properly managed by its management team and, if any problems are discovered in this regard, we would like to address them appropriately at that time.
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When you say “address them appropriately,” is it meant that the Financial Services Agency will also be considering administrative actions?
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It will depend on the details uncovered by the investigation.
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As for “depend on the details”, the “share house” problem has been the focus of attention. It is a problem that has left each and every one of its victims facing enormous debts and other difficulties. What are your views on the appropriateness of allowing this bank to continue providing financing for “share houses” in future?
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“Share houses” are not inherently bad, but I think there is a problem in Suruga
Bank’s process of making loans. The idea underlying “share houses” is by no means unsound but, given the present circumstances, we are engaged in monitoring. I have not yet received the details of the monitoring, so I will not make a comment on that at this time. Nevertheless, money should be lent in accordance with the borrower’s repayment capacity. Similar issue has arisen throughout the international community. Lending should only be provided after considering the borrower’s repayment capacity and other factors. This should be a matter of course, and the most important is whether this practice is being carried out properly.