[Minister in His Own Words]

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 FSA compiled data on the modification of the loan terms between the enforcement date of the Act concerning Temporary Measures to Facilitate Financing for SMEs, etc. and June 30, and announced the data on September 1, as you mentioned now. According to the announced data, modification of the loan terms has been implemented with regard to 90% of all applications related to loans to SMEs and housing loans, excluding applications still being screened. As I have been saying, the implementation rate is more than 90%.

In light of the announced data, I believe that financial institutions as a whole are making steady efforts to modify the loan terms. There is not any particular change in the overall number of applications, the total value of loans and the implementation rate, compared with the previous periods. Meanwhile, the number of applications received by many financial institutions in the disaster areas and the number of cases in which the modification was implemented have increased compared with the pre-disaster level. I presume that the need for the modification of loan terms has grown as a result of the impact of the earthquake.

I understand that financial institutions, including those in the disaster areas, are making vigorous efforts to modify loan terms in accordance with the purpose of the Act concerning Temporary Measures to Facilitate Financing for SMEs, etc. The FSA will continue to closely monitor future developments, including the impact of the disaster. In addition, while the Act concerning Temporary Measures to Facilitate Financing for SMEs, etc. is targeted at the disaster areas, we have also enacted the Revised Act on Special Measures for Strengthening Financial Functions, so I will keep monitoring the enforcement of these two laws.

[Extract from the press conference following the Cabinet meeting on September 6, 2011]

A2. As a way to deal with the double loan problem, the Guidelines of Workout for Restructuring Debt Owed by Individual Debtors (the Individual Debtor Guidelines for Out-of-Court Workouts) was compiled by a study group comprised of private-sector officials under the leadership of the Japanese Bankers Association, and a general incorporated association is managing the application of the guideline. The application of the Guidelines started on August 22, and between the starting date and September 5, a total of around 820 requests for consultation were received at the call center, the Tokyo headquarters and five branches, in Aomori, Iwate, Miyagi, Fukushima and Ibaraki Prefectures, as reported to me. 495 requests were received at the call center and 221 were received at the branch in Miyagi Prefecture, which suffered the greatest damage, with the total number of requests received reaching 815. I hope that the application of the Guidelines will facilitate smooth debt workouts and help disaster victims make a fresh start toward recovery.

[Extract from the press conference following the Cabinet meeting on September 9, 2011]

A3. I have read a news article estimating the amount of outstanding loans provided by the three megabanks at 1.9 trillion yen, which is equivalent to 1% of their total loan amount. However, the Financial Services Agency (FSA) will refrain from commenting on the loan balance of specific financial institutions. At any rate, the FSA will carefully monitor market developments and will continue to supervise financial institutions with a high level of alertness from the perspective of whether they are properly conducting risk management.

[Extract from the press conference following the Cabinet meeting on September 20, 2011]

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[ Press Releases in September ]

September 1	Access		Situation of changes in lending conditions based on the Act concerning Temporary Measures to Facilitate Financing for SMEs, etc. (Early reported values)
	Access		Working Group on Regulatory Approach to Group Management of Insurance Companies (3rd) - program
	Access		Campaign for Enhanced Consultation for Multiple Debtors 2011 Executed
September 2	Access		Comprehensive Exchange Study Team, 10th meeting - program
	Access		“Draft Cabinet Office Ordinance for Partial Revision of the Cabinet Office Ordinance Relating to Definitions Prescribed in Article 2 of the Financial Instruments and Exchange Act” - Results of public comments, etc.
September 5	Access		“Draft Cabinet Office Ordinance for Partial Revision of the Ordinance for Enforcement of the Banking Act, etc.” published
	Access		“Draft Cabinet Office Ordinance for Partial Revision of the Ordinance for Enforcement of the Banking Act, etc.” - Results of public comments
	Access		3rd Financial System Council “Working Group on Medium and Long Term Approach of Japan's Financial Industry” - program
September 6	Access		“Draft Cabinet Office Ordinance for Partial Revision of the Order for Enforcement of the Insurance Business Act,” etc.” - Results of public comments, etc.
	Access		“Designation of Transactions and Lending Excluded from Transactions Subject to Financial Instrument Debt Underwriting Business (draft)” published
September 7	Access		Decision on order to pay an administrative monetary penalty for market manipulation concerning Sei Crest Co., Ltd. shares
September 9	Access		Extension of deadline for ending management of Incubator Bank of Japan, Limited
	Access		Outline of the report for Ashikaga Holdings Co., Ltd. and The Ashikaga Bank, Ltd., on the implementation status of the approved business restructuring plans, based on the Act on Special Measures for Industrial Revitalization and Innovation of Industrial Activities
	Access		Outline of the report for The Bank of Fukuoka, Ltd., The Kumamoto Family Bank, Ltd. and The Shinwa Bank, Ltd., on the implementation status of the approved business restructuring plans, based on the Act on Special Measures for Industrial Revitalization and Innovation of Industrial Activities
September 12	Access		“19th Experts Meeting on Government Policy Assessment” to be held
	Access		Draft Supervisory Guidelines, draft Financial Inspection Manual, and additional Q&A on Basel II published
September 13	Access		1st trial date for Financial Instruments and Exchange Act violations court case concerning market manipulation concerning shares of Sakai Heavy Industries, Ltd.
September 14	Access		Decision on capital participation in The Sendai Bank, Ltd. and Tsukuba Bank, Limited
	Access		9th Examination Board on Strengthening of Financial Function - Outline of proceedings
September 16	Access		“Statistical Results of Offsite Inspection Monitoring” published
	Access		Number of debtors who halted contracted repayments since the Great East Japan Earthquake, and amount of such debts
	Access		FSA Disclosure System Working Group; Legal Expert Study Group Report ~ Issue between the Equal Treatment Rule among Shareholders in Japan and Foreign Securities Regulations regarding Rights Offerings ~
	Access		Approval of business restructuring plans for The Yamaguchi Bank, Ltd. and The Kitakyushu Bank, Ltd., based on the Act on Special Measures for Industrial Revitalization and Innovation of Industrial Activities
	Access		Authorization of banking license
September 20	Access		Merger of life insurance companies (1)
	Access		Merger of life insurance companies (2)
September 22	Access		Decision on order to pay an administrative monetary penalty for corporate bond solicitation without filing, by World Resource Communication Co., Ltd.
September 28	Access		“Draft Partial Revision of Financial Inspection Rating System” - Results of public comments, etc.
September 29	Access		Decision on order to pay an administrative monetary penalty for false statements in annual securities reports, etc. of fonfun corporation
	Access		Working Group on Regulatory Approach to Group Management of Insurance Companies (4th) - program
September 30	Access		Policy Evaluation of Special Measures concerning Taxation
	Access		Publication of the “FY2010 Performance Evaluation Report,” the “FY2011 Program Evaluation Report” and the “Main Points” of each
	Access		4th Financial System Council “Working Group on Medium and Long Term Approach of Japan's Financial Industry” - program
	Access		Administrative action on Barclays Capital Japan Limited
	Access		FY2012 Rough Expenditures Request
	Access		FY2012 budget, organization and staff request
	Access		Statistical results of fund monitoring survey
	Access		Business Sentiment etc. of Small and Medium-sized Enterprises - Questionnaire Survey Results Summary
	Access		Partial revision of FSA Regulatory Notice concerning designation of related corporations of credit rating agencies (group designation concerning explanation items of unregistered ratings)
	Access		Money lending business related documents updated
	Access		Ordinance for Partial Revision of the Ordinance for Enforcement on Labor Bank Law - published
	Access		“Draft Cabinet Office Ordinance for Partial Revision of the Cabinet Office Ordinance on Financial Instruments and Exchange Business” - Results of public comments, etc.
	Access		Cabinet Office Ordinance for Partial Revision of the Regulation for Terminology, Forms, and Preparation of Consolidated Financial Statements - Proclamation
	Access		FSA's FY2012 Request for Tax Revisions
	Access	is a link to the publication web page.

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Web Pages Most Accessed in September

This section shows the September Press Releases web pages which were accessed the most.

To see the web pages most accessed in the past, go to the FSA web site's Web pages most accessed (past data, etc.) (Available in Japanese only)

• Financial institutions being inspected by FSA
• List of licensed (registered) financial institutions
• Financial Facilitation Measures for Small and Medium-sized Enterprises
• Merger of life insurance companies (Mitsui Sumitomo Aioi Life Insurance Co., Ltd.)
• Merger of life insurance companies (NKSJ Himawari Life Insurance, Inc.)
• Supervisory Policy and Basic Policy for Financial Inspections in Program Year 2011
• “Draft Cabinet Office Ordinance for Partial Revision of the Order for Enforcement of the Insurance Business Act,” etc. - Results of public comments, etc.
• Beware of fraudulent investment solicitation!
• Draft Supervisory Policy, draft Financial Inspection Manual, and additional Q&A on Basel II published
• Cabinet Orders and Cabinet Office Ordinances concerning 2011 Revision of Financial Instruments and Exchange Act (enforced within six months), etc. published