Ad Hoc Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Tuesday, May 2, 2023, 11:45 am to 11:57 am)
 

Q.

The issue of financial system instability has become a topic of discussion in Asian countries too. So, I would dare to ask you what your view is of the impact of the collapse of the First Republic Bank in the United States on the Japanese financial system as well as Asian region.

A.

As for the news of the failure of First Republic Bank, which you mentioned, I am aware that on May 1, the Federal Deposit Insurance Corporation announced that it had become a trustee of First Republic Bank and that JP Morgan Chase Bank had assumed all deposits and almost all assets of the bank. Although I am not in a position to comment directly on this matter because it concerns overseas financial institutions, I understand that the U.S. authorities have quickly taken steps to prevent credit uncertainty from reigniting. In any case, we will continue to monitor developments in the domestic and foreign economic and financial markets and their impact on the stability of the financial system with a strong sense of caution.