New Year's Address from Chairman

As we enter the New Year, I would like to cite the following three tasks that the banking industry must tackle.The first task is to restore confidence in the financial system as soon as possible by quickly solving the bad loan problem and realizing better outlook for balance sheets of financial institutions. Although bad loans have been treated as a top priority by banks in the past few years, they have been unable to gain the confidence of markets, as the deflation has continued to create bad loans. To solve the present situation, we will earnestly tackle various issues, including those indicated in the "Program for Financial Revival," so that confidence of the market can be regained.The second task is to provide more useful financial products and services to meet the increasingly diversified needs of customers. In corporate finance, banks are expected to provide solutions to various financial needs of corporations. In personal finance, banks are expected to provide a greater variety of fund management services, convenient loans and channels for financial products and services. We will endeavor to enhance customer satisfaction by meeting these needs through the utilization of deregulation results and information technology.The third task is to lay the groundwork for a free and viable financial system. There still remain insurance and other areas that require further deregulation. A thorough review of the bloated public finance situation is essential to realize financial/capital markets ruled by true competition, the prerequisite of a free and viable financial system. Furthermore, the new Basle Capital Accord, which is being discussed currently, needs to be smoothly implemented in Japan. JBA will make constructive proposals to achieve this as necessary.At present, banks are expected to devote their strength to helping revitalize the weakened Japanese economy, in addition to playing the role of the intermediary of funds. That is, we must assist corporations in returing to the right track for growth by providing useful advice, which will in turn help banks grow again. As for individual customers, banks must mobilize various financial functions to maximize customer satisfaction.We banks will continue to tackle these tasks earnestly and contribute to revitalizing the Japanese economy.