Bank of Japan Gov. Yasuo Matsushita has offered to resign to take the blame for the arrest of a BOJ official who allegedly took bribes from commercial banks, Prime Minister Ryutaro Hashimoto said March 12.
Matsushita phoned him late March 11 to express his desire to step down after the arrest of Yasuyuki Yoshizawa, head of the Capital Markets Division of the BOJ's Credit and Market Management Department. Hashimoto told reporters at his Official Residence that he took Matsushita's request seriously and told him to do his utmost to carry out his tasks for the time being.
In a news conference March 11, Matsushita denied he had talked to the prime minister before meeting reporters. But in a statement released March 12, Matsushita admitted he had lied to reporters because he believed it would be inappropriate to reveal the contents of his phone conversation with Hashimoto before the prime minister explained the situation.
Matsushita is considered certain to resign as soon as his replacement is chosen, possibly by the end of the month. Chief Cabinet Secretary Kanezo Muraoka, at a news conference March 12, indicated the government will replace Matsushita in line with the April 1 enforcement of the revised BOJ Law, which would reinforce the central bank's independence from the government.
Muraoka said the government wants Matsushita to fulfill his duties as BOJ chief for the immediate future, adding there have been no discussions about who should succeed him or serve as acting BOJ governor. The candidate to replace Muraoka will probably be chosen from one of a variety of fields, including private business, judicial and academic sectors, as well as economists.
Toshihiko Fukui, the BOJ's senior deputy governor, is considered a top contender to succeed Matsushita, informed sources said. But the ruling Liberal Democratic Party is opposed to Fukui's promotion, the sources said. Meanwhile, the BOJ chief vowed March 12 to do his best to repair the damaged central bank's credibility.
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