Special Feature : One-on-One Interview Page 4

We invited Mr. Hironari Nozaki, Managing Director of Citigroup Global Markets Japan Inc., to have a conversation with Mr. Toma, President and CEO of Shinsei Bank, on the overall assessment of the First Medium-Term Management Plan and notable aspects of the Second Medium-Term Management Plan. Mr. Nozaki is a top analyst of the banking sector.

Special Feature : One-on-One Interview Shigeki Toma (President and Chief Executive Officer) Hironari Nozaki (Managing Director of Citigroup Global Markets Japan Inc.)

For nurturing the uniqueness of Shinsei Bank

Nozaki: If I may say something a little harsh, while Shinsei Bank proved that people who said that the former Long-Term Credit Bank of Japan wouldn't be able to do retail banking were wrong, I don't feel that Shinsei Bank's retail banking business today has the sense of excitement it first had back then. What do you think?

Toma: In the summer of last year, we established a project team in the Retail Banking Sub-Group and presented them with problems from three viewpoints. First, are they listening to customers' opinions attentively? Second, what do customers want? And, third, what bottlenecks were there preventing front-line staff members from performing their duties efficiently?

I asked them to discuss these issues and to propose improvement measures. Some of their proposals had a real sparkle, and this exercise changed the staff members' mindset that they could not change the environment in which they were in at the moment.

Additionally, this project team later engaged with the Retail Banking Sub-Group and Consumer Finance Sub-Group to further look into the same themes. There are opinions that we need to do something in partnership with outside players because we are small in size, from the viewpoint of integrating the three main operations of the retail business.

Nozaki: It is good to have connections with outside players, and it is fundamental to question the common sense of bankers.

Toma: I think it is good to be tested in the outside world. We will see the outcome of this experience in one to two years' time.
Please look forward to the future development of Shinsei Bank.

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