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. It is true that a strong case has been made along those lines with respect to financial institutions, especially by the United States. On the other hand, as far as Japanese financial institutions are concerned, quite a few of them are not paying tax (corporate tax). Those that are paying might even be fewer in number. Given such circumstances… Regrettably, they are not all to bear such burden yet, even in the normal form of taxes.

  Meanwhile, although Japanese financial institutions often seem to act quite selfishly, in any case, I hope they exert efforts as robust financial institutions while properly fulfilling their social function. After all, matters requiring government intervention and regulation should not be confused with matters that ought to be dealt with by private enterprises based on self-discipline. In cases where minimal regulation is required from a national perspective, it would be natural for the government to apply regulations based on its observation of the circumstances, economic climate and other various factors at that time, while giving consideration so that the autonomy and independence of the private sector would not be undermined. Regulations should not be applied from the viewpoint of putting the financial sector under state control. The national perspective is highlighted intensely in the approach currently taken by U.S. President Barack Obama, but I believe there are compelling circumstances. The circumstances (involving financial crisis in the U.S.) were extraordinary, after all.

  I have been keeping a close eye for some time on the current situation in Japan, but my judgment is that it does not yet warrant the imposition of such strong regulations by the government in the same manner as in the United States.

• A2. Given that the SEC probably took action from the nation’s standpoint, on behalf of the United States of America and in the interests of the American people, I am in no position to comment on this as a foreign national, whether it is good or bad. Excuse me for my predictable response.

• A1. As you may already be aware; the impact from Greece is spreading across the world, not surprisingly. The primary concern is how the European Union (EU) itself would respond to this, and indeed, the EU is currently working hard on it, but ultimately, it will inevitably affect Japan as well. As to whether or not Japan itself has any means to control such impact, regrettably, it has no means to completely shield itself from it, especially in regard to financial markets. Even today, the Nikkei average plummeted by four hundred yen or more. Given that there has been such an impact, I believe, after all, that Japan must determine ways to strengthen itself from within, and ways to implement efforts that are unique and feasible to Japan, while experiencing such global ups and downs, both big and small.

  Of course, efforts should be made to take measures to prevent the Japanese economy from being affected by external factors in various ways, but as far as its real economy is concerned, Japan itself is in an unusual state compared to others around the world, in that it has not overcome the deflationary gap or spiral. The real economy itself is sagging. Shouldn’t we seriously consider how to tackle this situation, based on Japan’s own efforts?

  When its real economy is strong, Japan can shield itself from various influences from other countries to a certain extent. Conversely, when its own economy is weak, Japan is heavily affected. That is why I believe we must make our utmost efforts to determine ways to strengthen the Japanese economy itself from within.

• A2. Do they have so much holdings? Regrettably, at this point in time, I am not aware of the details, as to how much has been purchased, by which bank. In any case, they are being bought and sold all the time. While I do not have the exact figures, I presume they do not hold massive volumes.