Excerpts from the Joint Press Conference given by KATO Katsunobu, Minister of Finance and Minister of State for Financial Services, and UEDA Kazuo, Governor of the Bank of Japan (The first meeting of G７ Finance Ministers and Central Bank Governors under the Canada G７ Presidency)

(Excerpt)

(Thursday, May 22, 2025, 2:09 pm to 2:25 pm)
 

[Opening remarks:]

Minister)

I would like to report on the outline of the G7 Finance Ministers and Central Bank Governors meeting, which just ended.
Today, following on from yesterday, we held discussions on AI, financial sector, and financial crime.
First, in the AI session, the impact of AI on productivity and financial stability was discussed. I mentioned the need for further analysis on how AI can compensate for the labor shortage caused by the declining population, how the relatively low utilization of IT by the elderly will constrain the spread of AI in the aging society, and how it can be supplemented by reskilling.
In addition, regarding the impact of AI on financial stability, I pointed out risks such as market manipulation due to increased volatility and the spread of false information and misinformation, and stated that it is necessary to actively support the sound use of AI.
Next, with regard to the financial sector, I pointed out that it is important to close the data gap in identifying the financial stability risks posed by "non-bank financial intermediation," whose presence has increased since the global financial crisis. I also pointed out that cybersecurity risks are increasing significantly due to heightened geopolitical tensions and advances in AI, and that collaboration among G7 authorities is becoming increasingly important.
Finally, on financial crime, I welcomed the "Financial Crime Call to Action" agreed this time by the G7 under the Canadian presidency. In particular, I expressed my appreciation for the fact that it clearly states serious concerns about the theft of crypto-assets, which are said to be a source of funds for the nuclear and missile development programs of North Korea, which abducted Japanese citizens, and the need to address this issue, and requested that effective measures be strengthened to address this issue. In addition, I stated that Japan, as a co-chair of the Asia/Pacific Group on Money Laundering (APG), has been actively providing technical assistance to developing countries, including those in the Pacific region, and that there have been calls for giving consideration to low-capacity countries and risk-based measures.
On that basis, the Joint Statement summarizing the results of the two day discussions was released just now. I appreciate that the message that the G7 will unite and work together to resolve the various issues of the global economy was sent out as a very significant message.
The administrative staff will provide a brief later on the details of the joint statement.
In addition, today I held bilateral meetings with the Honourable François-Philippe Champagne of the Canadian presidency and the Rt Hon Rachel Reeves of the United Kingdom. I believe that I was able to further deepen my relationship with each country through the bilateral meetings.