FSA Weekly Review No.531 March 30, 2023

FSA Weekly Review No.531: March 30, 2023

What’s New on the FSA Website

Week of March 17, 2023 - March 23, 2023

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

Public Comments

March 22, 2023	Publication of the finalized amendments to the regulatory notice determining the amounts to be accumulated as reserves for outstanding claims pursuant to Article 73, Paragraph 1, Item 2, of the "Regulation for Enforcement of the Insurance Business Act" after public consultation <Summary> The FSA finalized the amendments to the regulatory notice determining amounts to be accumulated as reserves for outstanding claims pursuant to Article 73, Paragraph 1, Item 2, of the "Regulation for Enforcement of the Insurance Business Act" after public consultation. The finalized amendments allow life insurance companies, foreign life insurance companies, and other applicable entities to take into account the impact from a possible pandemic or major natural disaster on their IBNR (Incurred But Not Reported Loss) reserves.* The finalized amendments took effect on March 22, 2023. * IBNR reserves in this context mean reserves for outstanding claims accumulated by life insurance companies, foreign life insurance companies, and other applicable entities for future losses arising from insured events that have not yet been reported. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/hoken/20230322/20230322.html

March 22, 2023

Publication of the finalized amendments to the regulatory notice determining the amounts to be accumulated as reserves for outstanding claims pursuant to Article 73, Paragraph 1, Item 2, of the "Regulation for Enforcement of the Insurance Business Act" after public consultation
<Summary>
The FSA finalized the amendments to the regulatory notice determining amounts to be accumulated as reserves for outstanding claims pursuant to Article 73, Paragraph 1, Item 2, of the "Regulation for Enforcement of the Insurance Business Act" after public consultation.
The finalized amendments allow life insurance companies, foreign life insurance companies, and other applicable entities to take into account the impact from a possible pandemic or major natural disaster on their IBNR (Incurred But Not Reported Loss) reserves.*
The finalized amendments took effect on March 22, 2023.

* IBNR reserves in this context mean reserves for outstanding claims accumulated by life insurance companies, foreign life insurance companies, and other applicable entities for future losses arising from insured events that have not yet been reported.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/hoken/20230322/20230322.html open new window

Press Releases

International

March 22, 2023	International Forum of Independent Audit Regulators published the Report on 2022 Survey of Inspection Findings
March 17, 2023	FIN/SUM2023

Councils

March 22, 2023	Publication of the agenda and handouts of the sixth meeting of the "Working Group on Impact Investment" <Summary> The FSA published the agenda and handouts of the sixth meeting of the "Working Group on Impact Investment," which was held on March 22, 2023. The Secretariat (the FSA) of the Working Group gave a briefing on the draft policy for encouraging impact investment and the draft framework of the report of the Working Group on Impact Investment, and some of the Working Group members gave presentations on impact investment, whereby the members discussed the respective topics thereof. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/impact/siryou/20230322.html

March 22, 2023

Publication of the agenda and handouts of the sixth meeting of the "Working Group on Impact Investment"
<Summary>
The FSA published the agenda and handouts of the sixth meeting of the "Working Group on Impact Investment," which was held on March 22, 2023.
The Secretariat (the FSA) of the Working Group gave a briefing on the draft policy for encouraging impact investment and the draft framework of the report of the Working Group on Impact Investment, and some of the Working Group members gave presentations on impact investment, whereby the members discussed the respective topics thereof.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/impact/siryou/20230322.html open new window

Banks

March 17, 2023	Authorization granted to The Bank of Yokohama, Ltd. alongside Concordia Financial Group, Ltd. for acquiring THE KANAGAWA BANK, LTD. as a new subsidiary <Summary> The FSA granted authorization to The Bank of Yokohama, Ltd. alongside Concordia Financial Group, Ltd. for acquiring THE KANAGAWA BANK, LTD. as a new subsidiary, pursuant to the "Banking Act." The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20230317-2/yokohama.html
March 17, 2023	KPIs (key performance indicators) to reflect the efficiency of financial intermediation by financial institutions (including major banks and regional banks) in terms of providing 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 <Summary> From the perspective of ensuring "visualization" of the efficiency of financial intermediation by financial institutions (including major banks and regional banks), the FSA published the list of KPIs (key performance indicators)* for financial institutions, which reflect their respective performances in terms of the efficiency of financial intermediation for the first half of FY2022 (April to September). The list also contains the website addresses of the respective financial institutions publicizing their initiatives taken for financial intermediation. * On September 9, 2019, the FSA set forth the KPIs (key performance indicators) to objectively reflect the efficiency of financial intermediation. 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 original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20230317/20230317.html

March 17, 2023

Authorization granted to The Bank of Yokohama, Ltd. alongside Concordia Financial Group, Ltd. for acquiring THE KANAGAWA BANK, LTD. as a new subsidiary
<Summary>
The FSA granted authorization to The Bank of Yokohama, Ltd. alongside Concordia Financial Group, Ltd. for acquiring THE KANAGAWA BANK, LTD. as a new subsidiary, pursuant to the "Banking Act."

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/ginkou/20230317-2/yokohama.html open new window

March 17, 2023

KPIs (key performance indicators) to reflect the efficiency of financial intermediation by financial institutions (including major banks and regional banks) in terms of providing 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
<Summary>
From the perspective of ensuring "visualization" of the efficiency of financial intermediation by financial institutions (including major banks and regional banks), the FSA published the list of KPIs (key performance indicators)* for financial institutions, which reflect their respective performances in terms of the efficiency of financial intermediation for the first half of FY2022 (April to September). The list also contains the website addresses of the respective financial institutions publicizing their initiatives taken for financial intermediation.

* On September 9, 2019, the FSA set forth the KPIs (key performance indicators) to objectively reflect the efficiency of financial intermediation. 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 original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/ginkou/20230317/20230317.html open new window

Others

March 17, 2023	Publication of the main issues raised by the FSA at opinion exchange meetings with relevant associations in the financial sector <Summary> The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with relevant associations in the financial sector in February 2023. (Available only in Japanese). The common topic across the groups was: - Development of risk management systems in regard to AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) and so forth. Notable issues discussed by most but not all groups were: - the 63rd Meeting of the Financial Service ADR (Alternative Dispute Resolution) Liaison Group - FIN/SUM 2023 - the draft basic guidelines for ensuring the stable provision of essential infrastructure services based on the "Economic Security Promotion Act" [provisional English law title], and - the enhancement of cybersecurity measures. * To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, every month the FSA publishes the main issues raised by the FSA at opinion exchange meetingswith the relevant associations in the financial sector. Opinion exchange meetings are held with the respective associations on a regular basis. In February 2023, opinion exchange meetings were held respectively with eight groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; Community Bank, Shinyo Kumiai (National Central Society of Credit Cooperatives); the Life Insurance Association of Japan; the General Insurance Association of Japan; the Japan Securities Dealers Association (JSDA); the Japan Investment Advisers Association; and the Labor banks sector. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/ronten/index.html
March 17, 2023	The FSA to host "G7 Cybersecurity Seminar 2023"

March 17, 2023

Publication of the main issues raised by the FSA at opinion exchange meetings with relevant associations in the financial sector
<Summary>
The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with relevant associations in the financial sector in February 2023. (Available only in Japanese).

The common topic across the groups was:

- Development of risk management systems in regard to AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) and so forth.

Notable issues discussed by most but not all groups were:

- the 63rd Meeting of the Financial Service ADR (Alternative Dispute Resolution) Liaison Group

- FIN/SUM 2023

- the draft basic guidelines for ensuring the stable provision of essential infrastructure services based on the "Economic Security Promotion Act" [provisional English law title], and

- the enhancement of cybersecurity measures.

* To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, every month the FSA publishes the main issues raised by the FSA at opinion exchange meetingswith the relevant associations** in the financial sector. Opinion exchange meetings are held with the respective associations on a regular basis.

** In February 2023, opinion exchange meetings were held respectively with eight groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; Community Bank, Shinyo Kumiai (National Central Society of Credit Cooperatives); the Life Insurance Association of Japan; the General Insurance Association of Japan; the Japan Securities Dealers Association (JSDA); the Japan Investment Advisers Association; and the Labor banks sector.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/common/ronten/index.html open new window

March 17, 2023

The FSA to host "G7 Cybersecurity Seminar 2023"

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