Japan: Financial Sector Assessment Program-Technical Note on Banking Supervision and Regulation Selected Issues

International Monetary Fund

No 2024/112, IMF Staff Country Reports from International Monetary Fund

Abstract: This Technical Note analyzes Banking Supervision and Regulation Selected Issues for the Japan Financial Sector Assessment Program (FSAP). The scope of the work focused on the key findings from the 2017 Basel Core Principles Detailed Assessment Report and the transformation of the supervisory approach by the Financial Services Agency (FSA) undertaken since the last FSAP. The FSA has initiated a major transformation of its supervisory approach, moving from checklists to a principles-based, risk-focused engagement. The FSA needs to accrue a cadre of staff that is sufficient both a cadre of staff that is sufficient both in terms of numbers and range of skills. The FSA has shifted towards a more modern, risk-based approach to supervision that is better suited to overseeing and responding flexibly to an evolving banking system. The FSA should set appropriate minimum liquidity requirements for all banks, not only internationally active banks. Greater attention is needed on the risks surrounding third party service providers, not least in the light of growing cyber threats. The industry’s need to have access to relevant information in third party service providers may need to be secured on a regulatory or legislative basis.

Keywords: FSA Mandate reform; FSA organogram; context of the Financial Sector Assessment Program; supervisory approach; FSAP's finding; interagency cooperation; Financial stability assessment; Financial Sector Assessment Program; Capital adequacy requirements; Early warning systems; Commercial banks; Global (search for similar items in EconPapers)
Pages: 46
Date: 2024-05-13
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=548800 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2024/112

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().