The resignations of Bank of Japan Gov. Yasuo Matsushita and his deputy are sufficient to allow the central bank a fresh start following the arrest of a BOJ official on suspicion of accepting bribes from major banks, Matsushita said March 17.
In his final news conference as BOJ governor, Matsushita also said the bank will soon consider setting up an in-house section that will include outside lawyers to ensure BOJ officials comply with the law. "As the (BOJ) leader, I have the heaviest supervisory responsibility, and the senior deputy governor is also resigning," Matsushita told reporters at the central bank's head office in Tokyo. "Basically, that should settle things.
"I hope the BOJ will start from scratch under a new governor and, under the new BOJ Law effective April 1, establish trust here and abroad and overcome problems with the financial system."
Masaru Hayami, a former BOJ executive director and former head of the Japan Association of Corporate Executives (Keizai Doyukai), is to replace Matsushita on March 20, subject to Cabinet approval.
Sakuya Fujiwara, a former economics reporter with Jiji Press, will also start serving as senior vice governor March 20, following Cabinet approval.
Matsushita expressed his appreciation of Hayami as being "strong both in theory and practice."
Matsushita and Senior Deputy Gov. Toshihiko Fukui will step down only two weeks before the implementation of the new BOJ Law, which is intended to give the central bank some independence from the government and to allow more transparency in its financial policymaking.
Matsushita assumed the governor's seat and Fukui the post of senior deputy governor in December 1994.