Financial Services AgencyFSA Weekly Review No.435

April 8, 2021

What’s New on the FSA Website

Week of March 29, 2021 - April 1, 2021

This page contains the latest in events, developments, and updates to the FSA website.

Public Comments

(The following public comments are available in Japanese)

March 31, 2021 Publication of the finalized "Cabinet Office Order to Amend the Ordinance on Accountings of Specific Purpose Trust Property, etc."open new window
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Ordinance on Accountings of Specific Purpose Trust Property, etc." The amendments mainly pertains to technical amendments to the "Ordinance on Accountings of Specific Purpose Trust Property" and other applicable rules in order to reflect accounting standards No.29 and No.31 alongside those implementation guidances respectively in regard to revenue recognition, etc. and disclosure of accounting estimates, which were updated and published by the ASBJ (Accounting Standards Board of Japan) on March 31, 2020. The amendments were enforced on March 31, 2021.
March 31, 2021 Publication of the draft amendments to the regulatory notices regarding operational risk capital requirements set forth under Pillar 1 and Pillar 3 of the Basel III frameworkopen new window
<Summary>
The FSA proposed the draft amendments to the regulatory notices regarding operational risk capital requirements set forth under Pillar 1 and Pillar 3 of the Basel III framework for banks and other financial institutions. The proposal mainly intends to provide amendments to the capital adequacy regulation pertaining to operational risk exposures, particularly in regard to operational risk measurement approaches, based on the Basel III framework finalized in December 2017.
In particular,
-  the proposal in regard to Pillar 1 is aimed at abolishing the advanced measurement approaches (AMA), the basic indicator approach (BIA), and the standardized  approach (TSA), thereby setting forth a new standardized measurement approach (SMA) which measures (calculates) the operational risk capital by multiplying the Business Indicator Component (BIC) by the Internal Loss Multiplier (ILM),
-  whereas the proposal in regard to Pillar 3 intends to newly set forth disclosure items related to the above.
March 31, 2021 Publication of the finalized amendments to the regulatory notices and guidelines pertaining to liquidity ratio requirements (Pillar 1 and Pillar 3) for internationally active banksopen new window
<Summary>
The FSA finalized the amendments to the regulatory notices and guidelines pertaining to liquidity ratio requirements (Pillar 1 and Pillar 3) for internationally active banks. The amendments are based on the documents published by the BCBS, namely, "Basel III：Net Stable Funding Ratio" and "Net Stable Funding Ratio disclosure standards," which were published in October 2014 and June 2015, in tandem with other technical amendments thereto. The amendments to the regulatory notices and supervisory guidelines pertaining to liquidity ratio requirements (Pillar 1 and Pillar 3) alongside the newly added FAQ on liquidity ratio requirements will take effect from September 30, 2021.
March 31, 2021 Publication of the finalized amendments to the regulatory notices pertaining to leverage ratio requirementsopen new window
<Summary>
The FSA finalized the amendments to the regulatory notice pertaining to leverage ratio requirements. The amendments extend the measures to exclude central bank reserves from the calculation of leverage ratio until the end of March 2022, due to the continuous uncertainty regarding the impact of COVID-19. The amendments have taken effect since March 31, 2021 and this measure will be extended for one year (until the end of 2022).

Press Releases

(The following press releases are available in English)
Banks

March 29, 2021 Living in Japan: How to Open a Bank Account and Send Money


Others

April 1, 2021 Tax Policies for Japan as an International Financial Center
March 31, 2021 Request for Notification of Originator and Beneficiary Information upon Crypto Assets Transfer (i.e. the travel rule)
March 31, 2021 Revision of the Corporate Governance Code
March 30, 2021 Dedicated Internasional Financial Center Page Launched
March 30, 2021 Updated statistics of money lending business
March 29, 2021 PDFFinancial sector’s roles in the transition to carbon neutrality- Concluding Remarks by HIMINO Ryozo, Commissioner, Financial Services Agency of Japan, at the Bank of Japan International Research Workshop on Climate-related Financial Risks


(The following press releases are available in Japanese)

Councils

March 31, 2021 Publication of the agenda and handouts of the "Study Group on Environmental Improvement for Effective Transition Finance" (provisional English title)open new window
<Summary>
The FSA published the agenda and handouts of the second meeting of the "Study Group on Environmental Improvement for Effective Transition-Finance" (provisional English title), which was jointly held on March 31, 2021 by the FSA, the METI (Ministry of Economy, Trade and Industry), and the MoE (Ministry of the Environment) to formulate basic principles for transition-finance in Japan, particularly in terms of raising funds through transition bonds, loans, etc.
March 30, 2021 Publication of the agenda and handouts of the 26th meeting of the "Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code"open new window
<Summary>
The FSA published the agenda and handouts of the 26th meeting of the "Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code," which was held on March 31, 2021.
March 29, 2021 Publication of the agenda and handouts of the seventh meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Councilopen new window
<Summary>
The FSA published the agenda and handouts of the seventh meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council, which was held on March 29, 2021.

 

Banks

March 31, 2021 Request for financial measures to deal with the outbreak of classical swine fever (CSF, a.k.a. hog cholera) in Nara Prefecture (The Kinki Local Finance Bureau)open new window
<Summary>
The Kinki Local Finance Bureau issued the statement titled "Financial Measures in Response to the Report of the Classical Swine Fever (CSF, a.k.a. Hog Cholera)" to the relevant financial institutions in Nara Prefecture. The statement requests the financial institutions to cooperate with prefectural authorities and appropriately deal with CSF-affected parties such as pig farms considering their circumstances, such as by attentively responding to the needs of business management consultation and new loans or change of loan terms.
March 31, 2021 Overview of modifications to lending conditions by financial institutionsopen new window
<Summary>
The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10, 2020, to February 28, 2021.*
* The majority of the data reflects the data until February 28, 2021, whereas the data of cooperative financial institutions reflects the data until December 31, 2020.
March 31, 2021 Publication of the updated regulatory notice designating financial institutions based on the provision of Article 16, Paragraph 2 of the "Order for Enforcement of the Small and Medium-sized Enterprises Business Enhancement Act, etc."open new window
<Summary>
The FSA published the updated regulatory notice designating financial institutions based on the provision of Article 16, Paragraph 2 of the "Order for Enforcement of the Small and Medium-sized Enterprises Business Enhancement Act, etc." The updates mainly pertain to technical amendments that have taken effect since April 1, 2021.
March 31, 2021 Publication of an ongoing status report of the conclusion of contracts between financial institutions and electronic payment service providers (electronic settlement agents)open new window
<Summary>
The FSA published an ongoing status report of the conclusion of contracts between financial institutions and electronic payment service providers (electronic settlement agents) which is required in terms of providing electronic payment services as well as reference system services (such as with respect to household account book apps [applications] and accounting services) pursuant to the "Banking Act." Particularly, concerned parties are granted a grace period until the end of May 2020 for the conclusion of contracts for the provision of reference system services. * The report outlines the contract conclusion status as of the end of September 2020.
 
* Amid the widespread impact of coronavirus disease 2019 (COVID-19), the grace period until September 30, 2020 was granted for contract parties of financial institutions (such as electronic payment service providers [electronic settlement agents] and banks) who have been mutually intending to conclude a bilateral contract but unable to meet by the original statutory due date, May 31, 2020.
March 31, 2021 Establishment of the "Collaborative Team to Achieve Revitalization and Sustainability of Regional Economic Societies" (provisional English title)open new window
<Summary>
The FSA and the Ministry of the Environment (MoE) have launched a new "Collaborative Team to Achieve Revitalization and Sustainability of Regional Economic Societies" (provisional English title). The Collaborative Team is aimed at bringing together knowledge and expertise and working together to achieve revitalization and sustainability of regional economies and societies.

Collaborative initiatives are mainly aimed at:
(1) supporting the development of human networks that contribute to the formation of regional economic ecosystems
(2) enhancing partnerships with related parties that contribute to solving regional issues, and to support identifying and nurturing talent (human resources), and
(3) supporting regional financial institutions' efforts to achieve revitalization and sustainability of regional economic societies through the implementation of the SDGs (sustainable development goals)/ESGs (environmental, social and governance).
March 30, 2021 Publication of statistics regarding unlawful reimbursement of deposits (as of the end of December 2020)open new window
<Summary>
The FSA published statistics regarding unlawful reimbursement of deposits caused by counterfeit and stolen cash cards, stolen deposit books, and unlawful internet banking activities. The statistics include details of incidents and compensation made by financial institutions based on reports from the financial institutions.
March 30, 2021 Approval granted to The Bank of Nagoya, Ltd. for its engagement in trust businessopen new window
<Summary>
The FSA granted approval to The Bank of Nagoya, Ltd. for its engagement in trust business pursuant to the "Act on Engagement in Trust Business by a Financial Institution."
March 29, 2021 Updated one-stop access to the information on KPIs (key performance indicators) to reflect the efficiency of financial intermediation by financial institutions (including major banks and regional banks)open new window
<Summary>
The FSA updated the one-stop access to the information on KPIs (key performance indicators) to reflect the efficiency of financial intermediation by financial institutions (including major banks and regional banks). The latest update pertains to the data for the second half of the fiscal year 2020.
The one-stop access contains information on KPIs ever since they were introduced to financial institutions in September 2019,* as well as the list** of KPIs for financial institutions.

* On September 9, 2019, the FSA set forth the KPIs (key performance indicators) to objectively reflect the efficiency of financial intermediation. Ever since then, the FSA has required financial institutions to publish their respective KPI results on their websites in the hope that they fully commit to providing managerial support (inclusive of lending) to small and medium-sized enterprises for the improvement of their business feasibility and productivity, without overly relying on collateral and personal guarantees.
 
** The list has been publicized to ensure "visualization" of the efficiency of financial intermediation by financial institutions (including major banks and regional banks) to reflect their respective performances in terms of the efficiency of financial intermediation. The list also contains website addresses of the respective financial institutions publicizing their initiatives taken for financial intermediation.

 

Securities

March 30, 2021 Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2020)open new window
<Summary>
The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2020, pursuant to the "Financial Instruments and Exchange Act." This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan.

 

Insurance

April 1, 2021 License granted to Asahi NewCo Preparatory Co., Ltd. to conduct life insurance businessopen new window
<Summary>
The FSA granted a license to Asahi NewCo Preparatory Co., Ltd.,* a subsidiary of Asahi Mutual Life Insurance Company, to conduct life insurance business pursuant to the "Insurance Business Act."
* The said preparatory company formally changed its temporary trade name anew to "Nanairo Life Insurance Co., Ltd." after it obtained the insurance business license.


Others

March 31, 2021 Request issued to the relevant financial institutions to utilize "gBizID" for the access to the Financial Services Agency Electronic Application and Notification Systemopen new window
<Summary>
The FSA has issued a PDFrequestopen new window to the relevant financial institutions and others to utilize "gBizID"* for their access to the Financial Services Agency Electronic Application and Notification System.
* "gBizID" is a standard authentication service platform established by the METI (Ministry of Economy, Trade and Industry) for corporations to help them implement statutory filings and others with the authorities. The platform has been made available to be operated across the government authorities (including ministries and agencies).

 

Site Map

top of page