As all of the measures were rated "s: Goal achieved," achievements in this area were rated "S: Goal achieved."

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Horace Washington
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1 Policy Goal 4-1: Ensure the smooth supply of Bank of Japan notes and coins, and suppress the counterfeit or altered currency Article 3 of the Act for Establishment of the Ministry of Finance states that the MOF has a duty to "maintain confidence in the currency." This is an important responsibility that is directly linked to the lives of the populace in terms of ensuring the security of transactions using currency. The objective of maintaining confidence in the currency is to ensure the appropriate running of the monetary system,including providing a smooth supply of Bank of Japan notes and coins, and preventing counterfeiting and forgery. General outline of the goal (Note) In Policy Goal 4-1, the term "currency" refers to Bank of Japan notes and coins (Article 2 (3) of the Act on Currency Units and Issuance of Coins). Bank of Japan notes are produced by the National Printing Bureau and issued by the Bank of Japan(Article 46 of the Bank of Japan Act). Coins are produced by Japan Mint and issued by means of their handover to the Bank of Japan by the government (MOF) (Article 4 of the Act on Currency Units and Issuance of Coins). (Measures for achieving the goal) Policy 4-1-1: Formulate a plan for the production and issue of Bank of Japan notes and coins Policy 4-1-2: Prevent the counterfeiting and forgery of currency Policy 4-1-3: Issue commemorative coins as a national commemorative project Policy 4-1-4: Ensure appropriate management of the reserve fund for the collection of coins Policy 4-1-5: Strive to increase the public's interest in currency Results of Evaluation of Policy Goal 4-1 of Policy Goal S: Goal achieved As all of the measures were rated "," s in this area were rated "S: Goal achieved." Measures Policy 4-1-1: Formulate a plan for the production and issue of Bank of Japan notes and coins Policy B-1: Formulate a production plan to ensure the smooth supply of currency In order to ensure that citizens can use the currency to settle a variety of economic transactions with confidence and peace of mind, the MOF will formulate a plan for currency production that facilitates the smooth provision of currency, taking into account such matters as the currency circulation situation. With regard to notes and coins to be produced in FY2015, the MOF verified the required number and made the requisite changes to a production plan during the fiscal year to ensure the smooth supply. The MOF supplied the Bank of Japan notes smoothly through production as planned. The MOF formulated a production plan for the Bank of Japan notes and the coins for FY2016 in consideration of the status of their circulation in the market so as to ensure the smooth supply.

2 This is because it is necessary to formulate a proper production plan, taking into account the status of the circulation of currency in the market, in order to facilitate the smooth supply of the Bank of Japan notes and the coins. ( the level of rating) Thus, the MOF formulated a production plan in consideration of the status of the circulation of currency in the market, so the level of was rated "." Policy B-2: Implement the General Examination of Minted Coins The MOF will conduct the General Examination of Minted Coins in FY2015 as well to confirm that coins minted by Japan Mint that are circulating in the market are of the proper weight. On November 16, 2015, the 144th General Examination of Minted Coins was conducted appropriately via checks in public places to ensure that coins minted by Japan Mint after the examination in the previous fiscal year that are circulating in the market are of the proper weight. This involves conducting checks in public places to ensure that coins in circulation in the market are of the proper weight, and is carried out as a means of maintaining the confidence of citizens in the currency. ( the level of rating) Thus, the MOF confirmed that coins in circulation in the market are of the proper weight, so the level of was rated "." of Measures As the MOF formulated a production plan to ensure the smooth supply of currency in consideration of the status of the circulation of currency in the market, the level of was rated "." Additionally, the MOF conducted the General Examination of Minted Coins and confirmed that coins in circulation in the market are of the proper weight, so the level of was rated "." As all of the measurement were rated "," this measure was rated "."

3 Measures Policy 4-1-2: Prevent the counterfeiting and forgery of currency Policy B-1: Prevent the counterfeiting and forgery of currency The MOF will take all possible measures to ensure the appropriate operation of the nation's monetary system, including preventing the counterfeiting and forgery of Bank of Japan notes and coins, by such means as strengthening partnerships with relevant organizations both within Japan and overseas. In addition to exchanging views with currency authorities of foreign countries, the MOF checked a liaison system in the event of the discovery of counterfeit currency with relevant organizations within Japan, such as the National Printing Bureau, Japan Mint, Bank of Japan, police authority and customs authority, and exchanged information more closely with these organizations. Furthermore, the MOF took all possible measures to ensure the appropriate operation of the nation s monetary system, including continued replacement old 500-yen coins with new ones, issue of commemorative coins that adopt highly counterfeit-resistant techniques, and environment improvement to prevent the counterfeiting and forgery of currency and the use of such currency by delivering awareness-raising posters. As a result, the number of counterfeit currency discovered in FY2015 was relatively small with 1,329 counterfeit Bank of Japan notes and 592 counterfeit 500-yen coins discovered. This is because counterfeiting and forgery must be prevented, as it causes citizens to lose confidence in the currency and could have a serious impact on the economy and society of our nation. ( the level of rating) As the MOF made efforts to develop an environment conducive to preventing the counterfeiting and forgery of currency and took all possible measures to ensure the appropriate operation of the nation's monetary system, the level of was rated "." of Measures Regarding prevention of the counterfeiting and forgery of currency, the MOF strove to develop an environment conducive to preventing the counterfeiting and forgery of currency and took all possible measures to ensure the appropriate operation of the nation's monetary system. As the measurement indicator was rated "," this measure was rated "."

4 Measures Policy 4-1-3: Issue commemorative coins as a national commemorative project of Measures The MOF revised the Cabinet Order under laws and regulations and issued the relevant commemorative coins in FY2015 as a national commemorative project. As the measurement indicator was rated "," this measure was rated "s: Goal achieved." x Measures Policy 4-1-4: Ensure appropriate management of the reserve fund for the collection of coins Policy A-1: Plans for sell-off of ingots and (Units: t, %) FY Target figure FY2011 4,411.3 (100.3) FY2012 FY2013 4, , , ,306.8 (100.2) 1,904.0 (100.2) FY2014 1, ,204.4 (100.4) FY (100.2) Coins that have become unsuitable for being circulated in the market due to wear and tear and were exchanged by the Bank of Japan and recollected by the government, and ingots created by melting down such coins are, as a general rule, used to mint new coins. Some of these ingots that are not used for minting new coins are sold off via general competitive bidding. The indicator is set to ensure that the sell-off of ingots is carried out appropriately, taking into account trends in demand for ingots and current inventory. (Note) The targets for FY2013 and FY2014 were reviewed during the fiscal year. (quantitative ( the level of rating) The MOF appropriately managed the reserve fund for the collection of coins by selling off the requisite amount of ingots in accordance with the plan formulated in consideration of trends in demand for ingots and the stock required for the production of new coins. Therefore, the level of was rated "." Policy A-2: Proportion of cases in which e-bidding is used for selling off ingots (Units: Cases, %) FY Target figure 82.0 (Number of bidding) (Number of e-bidding) FY2011 FY FY FY2014 FY This is set as an indicator for the purpose of using the e-bidding system from the perspective of achieving greater efficiency in bidding for the selling-off of ingots. (Note) The targets for FY2013 and FY2014 were reviewed during the fiscal year. ( the level of rating) The MOF strove to achieve greater efficiency in bidding by using e-bidding in all cases, so the level of was rated "." of Measures The MOF appropriately managed the reserve fund for the collection of coins by selling off the requisite amount of ingots in accordance with the plan formulated in consideration of trends in demand for ingots and the stock required for the production of new coins, and also strove to achieve greater efficiency in bidding by using e-bidding in all cases. Thus, all of the measurement were rated "," this measure was rated "."

5 Measures Policy 4-1-5: Strive to increase the public's interest in currency of Measures As an initiative to increase the public's interest in currency, the MOF strove to provide information on currency appropriately, and the measurement indicator was rated "." Therefore, this measure was rated "." Departments responsible Timing of Financial Bureau (Treasury Division) June 2016 policy evaluation

6 Policy Goal 4-2: Set up and operate an appropriate financial safety net, and respond promptly and accurately to financial crises General outline of the goal From the perspective of avoiding a ripple effect of credit uneasiness from spilling over to financial institutions and causing social unrest, while ensuring fiscal consolidation, the MOF considers it important to achieve a balance so that easy bailouts of financial institutions should not impose an excessive burden on the general public. Based on this recognition, the MOF, together with the Financial Services Agency and other bodies, plans and prepares systems for dealing with the failure of financial institutions and the management of financial crises, establish, amend and abolish related laws and regulations, and supervises relevant organizations engaging in affairs for dealing with the failure of financial institutions. If there is any risk of threatening the stability of the financial system, the MOF will take measures to ensure the stability in close cooperation with the Financial Services Agency and other bodies. Furthermore, the MOF will strive to strengthen the foundations of orderly regional financial systems via support that contributes to the strengthening of regional regeneration and revitalization endeavors in the field and also strengthen the foundations of orderly regional financial systems in areas affected by the Great East Japan Earthquake. (Measures for achieving the goal) Policy 4-2-1: Put in place the systems required for a stable financial system Policy 4-2-2: Implement measures aimed at ensuring appropriate supervision of the Deposit Insurance Corporation of Japan, etc. and the stability of the financial system Results of Evaluation of Policy Goal 4-2 of Policy Goal S: Goal achieved As Measures and were both rated "," s in this area were rated "S: Goal achieved." Measures Policy4-2-1:Put in place the systems required for a stable financial system Policy B-1: Putting in place the systems required for a stable financial system The MOF will gather information concerning the planning and preparation of systems for dealing with the failure of financial institutions and the management of financial crises, and will work in partnership with the FSA and other bodies to put in place the necessary systems. Regarding the public funds element of the Deposit Insurance Corporation of Japan and other bodies, the MOF will ensure that the publicly funded element remains at an appropriate level, while taking into account the management status of financial institutions and market trends. While taking into account the management status of financial institutions and market trends, the MOF worked in partnership with the Financial Services Agency and other bodies to develop and manage systems for dealing with the failure of financial institutions, such as through setting government guarantee quotas for funding of the Deposit Insurance Corporation of Japan and other bodies. This is to ensure the stability of the financial system. ( the level of rating) While taking into account the management status of financial institutions and market trends, the MOF worked in partnership with the Financial Services Agency and other bodies to develop and manage systems for dealing with the failure of financial institutions, such as through setting government guarantee quotas. Therefore, the level of was rated "."

7 of Measures As the key indicator, Policy B-1, was rated "," this measure was rated "." Measures Policy 4-2-2: Implement measures aimed at ensuring appropriate supervision of the Deposit Insurance Corporation of Japan, etc. and the stability of the financial system Policy B-1: Appropriate supervision of the Deposit Insurance Corporation of Japan and other bodies In order to avoid imposing a burden on the people, the MOF will work in partnership with the FSA and other bodies to supervise the Deposit Insurance Corporation of Japan and other bodies, to ensure that the formulation of budgets and funding plans, the management of outstanding debt, and the recovery of public funds that have already been provided are carried out appropriately. Moreover, the MOF will carry out appropriate supervision of Policyholders Protection Corporations and the Japan Investor Protection Fund, among other bodies. With regard to the Deposit Insurance Corporation of Japan and other bodies, the MOF properly examined its FY2016 budget and funding plan and granted approval for borrowings. Additionally, the MOF provided consent for the decision on the government's capital participation (Shinkumi Federation Bank) under the Act on Special Measures for Strengthening Financial Functions (Act No. 128 of 2004) with the aim of contributing to the maintenance of an orderly credit system through strengthening financial institutions' financial bases. The MOF also approved the repayment from a capital recipient (77 Bank). This is to ensure appropriate supervision, in order to avoid imposing a burden on the people. In addition, it is to protect insurance policyholders and investors, and ensure the stability of the financial system. ( the level of rating) As well as examining the FY2016 budget and funding plan and granting approval for borrowings of the Deposit Insurance Corporation of Japan and other bodies, the MOF provided consent for the decision on the government's capital participation under the Act on Special Measures for Strengthening Financial Functions and approved the repayment from a capital recipient. Thus, the MOF properly conducted supervision, so the level of was rated "."

8 Policy B-2: Appropriate supervision of the Regional Economy Vitalization Corporation of Japan In partnership with the relevant ministries and agencies, the MOF will carry out appropriate supervision to ensure that the Regional Economy Vitalization Corporation of Japan is appropriately conducting its business operations including its support for the regeneration of individual companies, in order to ensure that public funds are being used properly and to strengthen the foundations of orderly regional financial systems via support that contributes to the strengthening of regional regeneration and revitalization endeavors in the field. In granting approval for the FY2016 budget of the Regional Economy Vitalization Corporation of Japan, the MOF carried out supervision to ensure its proper business operations from the perspective of strengthening the foundations of orderly regional financial systems. In FY2015, the MOF decided to provide support for the business rehabilitation to 19 entities, dispatch specified experts to 52 entities, establish 12 funds, and provide specified support to 21 entities. The aim of this is to ensure that public funds are being used properly and to strengthen the foundations of orderly regional financial systems via support that contributes to the strengthening of regional regeneration and revitalization endeavors in the field. ( the level of rating) The MOF carried out appropriate supervision of the Regional Economy Vitalization Corporation of Japan, including approving its FY2016 budget, so the level of was rated "." Policy B-3: Appropriate supervision of the Corporation for Revitalizing Earthquake- Affected Business In partnership with the relevant ministries and agencies, the MOF will carry out appropriate supervision of the Corporation for Revitalizing Earthquake-Affected Business, which provides support for the rehabilitation of business operators in disaster-afflicted areas, in order to ensure that public funds are being used properly and to strengthen the foundations of orderly regional financial systems in areas affected by the Great East Japan Earthquake. In granting approval for the FY2016 budget of the Corporation for Revitalizing Earthquake-Affected Business, the MOF carried out supervision to ensure its proper business operations from the perspective of strengthening the foundations of orderly regional financial systems in areas affected by the Great East Japan Earthquake. The MOF decided to provide rehabilitation support to 93 entities in FY2015. The aim of this is to ensure that public funds are being used properly and to strengthen the foundations of orderly regional financial systems in areas affected by the Great East Japan Earthquake. ( the level of rating) The MOF carried out appropriate supervision of the Corporation for Revitalizing Earthquake-Affected Business, including approving its FY2016 budget, so the level of was rated "."

9 of Measures The MOF properly supervised the Deposit Insurance Corporation of Japan and other bodies, such as examining the FY2016 budget and funding plan, granting approval for borrowings, providing consent for the decision on the government's capital participation under the Act on Special Measures for Strengthening Financial Functions, and approving the repayment from a capital recipient. Additionally, the MOF also properly supervised the Regional Economy Vitalization Corporation of Japan and the Corporation for Revitalizing Earthquake-Affected Business. Thus, as all measurement were rated "," this measure was rated "." Departments responsible Minister s Secretariat Financial System Stabilization Division Timing of policy evaluation June 2016

Policy 1-1-1: Initiatives aimed at achieving greater efficiency in public finance, etc. through prioritized allocations of budget

Policy 1-1-1: Initiatives aimed at achieving greater efficiency in public finance, etc. through prioritized allocations of budget Policy Goal 1-1: Improve the efficiency and quality of public finance through prioritized allocations of budget General outline of the goal The government is conducting numerous activities in a broad range