Press Conference By KATAYAMA Satsuki, Japan Minister Of Finance And Minister Of State For Financial Services - Overall Aspirations And Ministerial Perspectives For Fiscal Year 2026

As this is the first post-Cabinet meeting press conference of the new year, could you please provide your overall aspirations and ministerial perspectives for fiscal year 2026?

Actually, I have been working hard since the 5th. Up to the 4th was holidays, and when I rang the bell on the 5th, the first ring saw the Nikkei Average rise by 700 yen. After three rings, I thought it might jump 2,100 yen, but that didn’t happen. It did hit a new high, but then it underwent a bit of a correction due to the U.S. market and other factors. Today it’s recovering. The markets, including the stock market, continue to experience significant volatility. We will continue to strive diligently to ensure market confidence while implementing responsible, proactive fiscal policies to build a prosperous Japan. We must push forward to ensure that various policies take effect quickly and that those already implemented yield results. Judging from what I saw during the New Year holidays, consumer spending doesn’t seem too bad, and during my long career as a politician, I have made visits to various places from January 2nd. November consumption also grew slightly more than expected — real consumption, not nominal. Since real consumption also increased, I earnestly hope we can swiftly create conditions for proper wage increases that outpace inflation, making this year one where growth and investment truly flourish.

In connection with the initial budget proposal, the surplus under the Act on Limitation on Shareholding by Banks and Other Financial Institutions was included as additional non-tax revenue for the provisional gasoline tax. The suspension of purchases of policy-held shares by the Banks’ Shareholding Acquisition Corporation is set to expire this March. Minister, how do you evaluate the roles that the Corporation has played to date as part of crisis responses, and the possibility of halting purchases going forward? I would like to hear your thoughts.

As has already been widely reported, the Banks’ Shareholding Acquisition Corporation intends to conclude its stock purchase operations by the end of March this year, in accordance with current legal provisions. This decision is based on the current status of stock holdings at banks and other institutions, the Corporation’s own stock purchase and disposal activities, and trends in the stock market. I may have mentioned this previously. I believe the role this institution has fulfilled has been highly significant. While there were various opinions, the fact that such a large amount was disposed of ultimately resulted in a profit. From the perspective of public benefit, there was no loss. Looking at the closing price, yesterday’s latest level was around 70%, meaning it was profitable. Considering this, and provided that the management and disposal of shares proceed smoothly going forward, I believe this project has been meaningful overall. Our current policy is to ensure appropriate follow-up for the smooth operation of these activities. At this time, there are absolutely no plans for any additional measures or actions beyond this.

I would like to ask about the financial support strategy. The Headquarters for Japan’s Growth Strategy will start discussions soon. As you also serve as the chairperson of the subcommittee, could you please explain again specific points you are focusing on for discussion and what challenges you foresee.

This will be conducted as a cross-cutting area within the growth strategy. I will serve as the subcommittee chair, with the Vice-Minister acting as the deputy chair. We will bring together distinguished individuals from various sectors to participate. Naturally, among the various items, there is discussion on strengthening financial capabilities. Since this must first lead to growth, we will consider how finance can play a role in a way that contributes to growth. This applies to both funding and lending. Furthermore, as has been widely discussed, it would be beneficial if corporate governance reforms were directed toward boosting investment, particularly growth investment within companies. Looking at the Bank of Japan’s current external funds balance, the negative figures for the private corporate sector are not very growth-oriented. This has long been pointed out as a weakness of the Japanese economy, so it would be good if the reforms could lead to improvements in this area. As I’ve mentioned in various places since the start of the new year, the shift from savings to investment, the new capitalism, and the vision of promoting Japan as a leading asset management center have significantly contributed to national wealth. However, compared to the United States, the assets held by the Japanese public still generate less returns. If these returns were to further bolster national wealth, that is, if growth were driven by the expansion of securities and capital markets, then I believe growth would be driven by the expansion of securities and capital markets. However, we have not yet reached the point where cutting-edge sectors have gained traction. Therefore, I believe the key challenge lies in how we can achieve this.