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

(Excerpt)

(Thursday, May 11, 2023, 2:30 pm to 2:45 pm)

[Opening remarks:]

The third meeting of G7 Minister of Finance and Central Bank Governors under the Japanese presidency will be held in Niigata for three days from today.
Tomorrow, on the second day, we will discuss ways to further strengthen the financial system in light of the changing environment surrounding the financial sector, including the development of social media and Internet banking.
Today, as our first event, the OECD and Japan are co-hosting Round-Table on Corporate Governance. We will discuss, among other things, the revision of the G20/OECD Principles of Corporate Governance, which is the only global standard approved by the leaders of the G20. I too will make a presentation there.

[Questions and answers:]

Q.

You talked about moving forward with identifying and scrutinizing lessons to be learned in the context of the current financial instability, and I would like to ask you in more detail what specific actions you will take and whether you intend to present them at this G7 Niigata.

A.

I think those will only be known after discussion, but one of several things becoming clear in the recent bank failures in the United States is that credit uncertainty spreads all at once through social media. Also, with the development of internet banking and other services, there was a sudden outflow of funds because, unlike in the past, withdrawals were made at all hours of the day, even outside the business hours of banks. We recognize that the environment surrounding the financial sector is changing significantly in this way, and that this is a common challenge faced by countries around the world, including Japan.
In addition, the Financial Stability Board (FSB) under the G20 is identifying and scrutinizing lessons on regulatory and supervisory issues that are learned from the recent bank failures. At this G7 meeting, we hope to discuss ways to further strengthen the financial system in light of these changes in the environment and the FSB's efforts. I think what conclusion we will come to depends on the discussion.