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

(Excerpt)

(Tuesday, March 22, 2023, 8:45 am to 8:50 am)
 

Q.

Just prior to the recent holiday, it was announced that Credit Suisse, a major Swiss financial group facing fears of insolvency at that time, had agreed to be acquired by UBS, another major Swiss financial group. What is your view on the impact of this on the Japanese financial system?

A.

I am aware that the agreement was reached on March 19 for UBS to acquire Credit Suisse with assistance from the Swiss authorities and that on the following day, March 20, the Bank of Japan and other major central banks announced they would be enhancing liquidity measures in US dollars.
We are seeing risk avoidance movements in financial markets, and we welcome prompt actions by national authorities to prevent the effects of fears of the credit contagion.
Japanese financial institutions overall currently have sufficient liquidity and adequate capital, and the financial system as a whole remains stable.
Our government is nevertheless mindful of the various risks that may exist, and will continue closely monitoring developments in domestic and international economies and financial markets and their impact on the stability of the financial system in cooperation with the Bank of Japan and financial authorities.