Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, June 10, 2022, 9:42 am to 9:49 am)

[Questions and answers:]

Q.

The other day, the Kishida administration's Grand Design and Action Plan for a New Form of Capitalism was approved by the Cabinet, and it discusses formulating doubling asset-based incomes plan. This approach is designed to shift personal financial assets from savings to investment, but what do you think is the reason that personal financial assets are not being invested in the first place?

A.

Japan's household financial assets are often said to be mostly held as cash and deposits, with a lower percentage of risk assets such as stocks and investment trusts than American households. You asked about the reason for that, but I think it is difficult to generalize because a variety of factors are at play, including the impacts of market and economic conditions and the strong tendency of households to avoid risk. Although people in the US seem to be more aggressive in holding risk assets, the ratio of shares and investment trusts in household portfolios was at one time about the same in both the US and Japan. In 1985, US households held 20.0% of its financial assets as stocks and investment trusts, and Japanese households held 18.3%, roughly the same percentage; the subsequent divergence likely came about because various policy measures were taken in the US to support household asset building and lead to the current state. To shift household financial assets in Japan from savings to investment, therefore, it is important that we create an environment conducive to continuous and long-term investments, even in small amounts, by a wide range of households with an eye on future life plans. The Financial Services Agency will consider the types of policy measures that should be taken from a broad perspective, giving due consideration to Grand Design and Action Plan for a New Form of Capitalism approved by the Cabinet.