Japanese

Provisional Translation

[Opening remarks:]

Minister)

Following yesterday’s inauguration of the Reshuffled Second Takaichi Cabinet, I have been reappointed as Minister of Finance, Minister of State for Financial Services, and Minister in charge of Reviewing Special Measures Concerning Taxation and Subsidies. I have also been newly appointed Minister in charge of Consumption Tax and Working Individuals’ Burden Relief Support Benefit Legislation. I look forward to continuing to engage with you.
... With regard to financial affairs, we will advance measures under the Financial Services Strategy to Promote Growth Investment, with the aim of further advancing the initiative to promote Japan as a Leading Asset Management Center and promoting growth investment. As I have noted in response to questions on several occasions at press conferences, we have made successive efforts to expand the domestic investor base by enhancing the attractiveness of Japanese government bonds for retail investors and to strengthen the capabilities of regional financial institutions. In this context, I was instructed to support regional financial institutions in further fulfilling their financial intermediation functions and ensuring their soundness. In particular, the FSA Strategic Priorities formulated on the 15th position the promotion of the Financial Services Strategy as a top priority. With a view to realizing a strong economy, I intend to steadily implement and advance the measures set out in the Strategy.

[Questions and answers:]

Q.

As you mentioned earlier, you have been reappointed as Minister of Finance and Minister of State for Financial Services, and have also been newly appointed Minister in charge of Consumption Tax and Working Individuals’ Burden Relief Support Benefit Legislation. Could you tell us what instructions you received from Prime Minister Takaichi and share your thoughts on how you intend to approach your responsibilities going forward?

A.

... In the area of financial administration as well, I believe that it is important to promote growth investment toward realizing a strong economy by steadily implementing and advancing the measures set out in the Financial Services Strategy, including measures to enhance the functioning of financial institutions and markets as well as investment in infrastructure underpinning the financial system. I often speak with the heads of regional financial institutions and leaders of regional business communities. In these discussions, there is a growing view that funds should be raised, given that the Bank of Japan’s assessment indicates that financial institutions’ lending attitudes have become highly accommodative and that the loan-to-deposit ratio has exceeded 90% at some major regional banks. I feel that the situation has changed significantly from what it was before. In connection with this willingness to take risks and invest, I saw a published interview with the head of one of Japan’s three megabanks. The people now at the helm belong to a generation that began their careers at financial institutions during a prolonged period when the focus was on avoiding risks and dealing with various problems. We also remember what things were like in the period before that, and we know what worked, what produced mixed results, and what did not work. I intend to make every effort to convey to that generation the useful lessons we have learned and encourage them to take action.