[Hot Picks from the Financial World]
*   We deliver the hottest information of the times in this section, selected from among 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 Financial Services Agency's website.
 
[Non-payment of insurance claims]
Q.     The Financial Services Agency (FSA) is currently instructing non-life insurance companies to report the state of non-payment of insurance claims. Their reports are due to be filed at the end of this month, but it seems certain that they will again report a large number of new non-payment cases. What is your impression of this situation? Also, what are the causes of this situation, and what is FSA's policy to deal with it?

A.		  
the formal reports are yet to be made. If additional non-payments are identified, we will scrutinize and check the content of the reports, examine the governance framework, payment management framework and other such frameworks in detail, and properly deal with the situation, including taking administrative action, depending not only on how many non-payment cases there are but also on the nature of the facts.
(from the press conference following a cabinet meeting on Friday, September 29, 2006)
  
Q.     Do you think that unintentional non-payments are acceptable and intentional non-payments are more malicious, considering that the payment of insurance claims is a fundamental task for insurance companies?

A.		  
As to whether it is intentional or not, the burden of proof probably lies with the insurance company. As I just stated, in general terms and in the present-day context, the burden of proof should lie with the company in cases where a consumer incurred some kind of damage, even if it was unintentional, in view of products that cannot easily be determined by consumers due to their increasing complexity.
(from the press conference following a cabinet meeting on Friday, September 29, 2006)
 

[North Korea]
Q.     What kind of action will the Financial Services Agency (FSA) take from here onwards?

A.		  
In response to these measures, the FSA will encourage financial institutions to establish inquiry counters and the like for loans, etc. to domestic companies, especially with respect to operations involving trade with North Korea, so that there will be no management concerns, and will prompt private financial institutions to make efforts in regards to what related financial institutions can do based on discussions with government-affiliated financial institutions, etc. to the greatest extent possible.
(from the press conference following a cabinet meeting on Friday, October 13, 2006)
 

[Selection of an acquiring party of Ashikaga Bank]
Q.     What is your perception of the governor of Tochigi Prefecture's requests about the selection of the acquirer of Ashikaga Bank?

A.		  
The governor, the chairperson of the prefectural assembly, the head of the special committee and elected members of the House of Councillors and the House of Representatives engaged in the request campaign extremely enthusiastically-even Diet members who could not turn up in person either passed on their messages or reported that they would be absent. Many of them expressed their expectations for sustained and sufficient financial intermediation functions in the region, and their enthusiasm was impressive.
(from the press conference following a cabinet meeting on Tuesday, October 17, 2006)
  

[Others]
Q.     The Bank of Fukuoka is going to effectively take over Kyushu-Shinwa Holdings according to some press reports. What is FSA's response to this?

A.		  
Although I cannot comment on individual banks, generally speaking, regional banks should make decisions based on their respective management efforts. In particular, business confidence varies from region to region, so they should exert further efforts in their financial intermediation functions.
(from the press conference following a cabinet meeting on Friday, October 13, 2006)
  
Q.     Sumitomo Mitsui Financial Group announced that it has finished paying back all public funds today, meaning that all so-called mega-banks have completed paying back public funds. What are your thoughts on this?

A.		  
This is a monumental, delightful milestone towards our goal. We hope banks will gain vigor and further improve their international competitiveness and their credibility among customers, to establish a sound financial market.
(from the press conference following a cabinet meeting on Tuesday, October 17, 2006)
  
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