Even after the publication of the “Current Situation and Issues for Improving Internal Audits of Financial Institutions” (hereinafter referred to as the “Current Situation and Issues”) in June 2019, the Financial Services Agency (FSA) has continued to monitor financial institutions to improve their internal audits. In October last year, the FSA organized status of initiative and recognition of issues of internal audits in large banking groups, and published it as a progress report.

In addition, the FSA has continued to monitor not only large banking groups but also regional financial institutions, large securities companies, and large insurance companies, and has now summarized the monitoring results and compiled them into the “Monitoring Report for Improving Internal Audits of Financial Institutions (2024)” together with the FSA’s recognition of issues and expectation level.

The FSA expects that this document will help financial institutions to improve their internal audits in accordance with their size and characteristics.

The FSA will continue to promote the improvement of internal audits by proceeding with in-depth monitoring of financial institutions. In addition, the FSA will consider the necessity of updating the “Current Situation and Issues” based on the results of monitoring and international trends regarding internal audit (including reconsideration of each phase).

• Monitoring Report for Improving Internal Audits of Financial Institutions (2024)

Contact information

Office of Inspection on Risk Management, Risk Analysis Division, Strategy Development and Management Bureau, Financial Services Agency

Tel +81-(0)3-3506-6000 (ext. 5439)