Excerpts of the Presidency Press Conference Following the G7 Finance Ministers and Central Bank Governors’ Meeting
(G7 Finance Ministers and Central Bank Governors Meeting, Washington D.C.)

 

(Excerpt)

(Wednesday, April 12, 2023, 5:48 pm to 6:15 pm)
 

On April 12, SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services; UEDA Kazuo, Governor of the Bank of Japan; and KANDA Masato, Vice-Minister of Finance for International Affairs gave a presidency press conference following the G7 Finance Ministers and Central Bank Governors’ Meeting, with Japanese-English simultaneous interpretation provided. The following are excerpts from the conference:

[Opening remarks:]

Minister)

We discussed the global economic and financial sector developments following the heightened uncertainty in the financial markets last month. We shared the view that the financial system is resilient, supported in large part by regulatory reforms implemented after the global financial crisis in 2008. Based on that view, we agreed to continue closely monitoring financial sector developments and stand ready to take appropriate actions to maintain the stability and resilience of the global financial system.

[Questions and answers:]

Q.

I have questions for Minister Suzuki and Governor Ueda.
My first question is about financial system instability. The joint statement says the finance ministers and central bank governors will stand ready to take appropriate actions to maintain the stability of the financial system. What exactly do you have in mind?
My second question also concerns financial system instability. The IMF’s World Economic Outlook, released just recently, mentions the implications of such instability. What impact do you think it will have on downside risks to the world economy and consequently on the Japanese economy?

Minister)

At today’s meeting, we exchanged views on the failure of Silicon Valley Bank and its impact on Credit Suisse among others. As I said earlier, and as the G7’s statement confirms, we agree that the financial system is resilient, supported by relevant authorities' prompt responses as well as the financial regulatory reforms implemented after the global financial crisis in 2008.
That said, we must continue to closely monitor financial sector developments and stand ready to take appropriate actions as necessary. That’s what we agreed on.
In answer to your question about specific appropriate actions, I would say close monitoring and staying watchful of any risk, as the financial system is stable now. As I see it, the system will remain stable at least for the time being.
So, my understanding is that should there be wider ramifications, relevant authorities in member countries will work together to, say, secure liquidity, as we did recently. That is the basic stance, I believe.