This section provides information regarding the hot topics of the moment, selected from questions and answers given at the Minister's press conferences, etc.

If you wish to find out more, we invite you to visit the “Press Conferences” section of the FSA website.

• A1. The other day, I instructed FSA staff to conduct a study on such a review. One issue is whether the review should cover second-tier regional banks or should be limited to smaller institutions like “shinkin” banks and credit cooperatives. That should be considered in light of the actual status of inspection. The FSA inspectors rely on detailed data and documents that are not necessarily essential for the examination of the actual situation of the financial sector, although FSA staff say they are not demanding the submission of such data or documents. I have argued that inspectors should acquire the capability to make judgments concerning financial institutions without relying on documents and numerical data and that an inspection conducted by inspectors without such capability is not an inspection in its true sense. Therefore, the approach of relying too much on submitted documents and data should be changed. That is my argument. From the standpoint of financial institutions, FSA inspection imposes a considerable burden. To put it simply, they tremble with fear as they prepare for the inspection.

  When I suggested to some financial institutions that they should actively provide loan before I became Minister for Financial Services, they used to tell me that they were afraid of the FSA and inspectors. Although I know such fear is used as an excuse for denying a loan in many cases, it is important to limit the burden imposed by inspection to a necessary minimum. What is important is to urge financial institutions to discipline themselves without imposing an excessive burden. Though extending loans in an appropriate manner and thereby fulfilling their social function are elements of improvement of a financial institution’s financial condition, not much emphasis was placed on those points previously. Therefore, I am placing emphasis on those points.