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

(Excerpt)

(Friday, April 2, 2021, 10:35 am to 10:41 am)

[Questions and answers:]

Q.

Overseas subsidiaries of Nomura Holdings, Inc. and Mitsubishi UFJ Securities Holdings, Co. Ltd. announced the possibility of enormous losses to be caused in transactions with a US investment firm, one of their clients. Neither have disclosed the transaction details. What measures will the FSA take for the risk management systems of Nomura Holdings and Mitsubishi UFJ Securities in relation to this series of problems? How will the FSA share information or otherwise collaborate with financial regulatory and supervisory authorities of the United States and European countries? Please explain your views on measures to be taken by the FSA.

A.

Basically, it is a matter for the private sector, or individual financial institutions concerning their transactions. Therefore, I will not make comments on influences of individual cases, but we understand that, as far as Nomura and Mitsubishi are concerned, those losses would not significantly damage their financial soundness or cause hindrance to their operations. I think that they will make reports as needed and we are endeavoring to ascertain the actual statuses. At any rate, the FSA will carefully monitor the circumstances to ensure information sharing with the Bank of Japan and overseas authorities.

Q.

On March 31, the FSA received a report on a series of system failures of Mizuho Bank, Ltd. Could you explain how the FSA accepts the content of the report and future responses, if any?

A.

Regarding the series of Mizuho's system failures, a report from Mizuho Financial Group, Inc. was submitted to the FSA on March 31. The FSA will make an investigation into the cause and conduct a follow-up examination, but it is too early to present specific details.