Japanese
January 15, 2025
Updated: July 4, 2025
Financial Services Agency
(Japanese version: published December 25, 2024)

Working Group on Improving Internal Audits of Financial Institutions

Summary

The FSA has decided to establish a “Working Group on Improving Internal Audits of Financial Institutions” to discuss issues involved in internal audits with related organizations and external experts.

In September 2024, the FSA published “Monitoring Report for Improving Internal Audits of Financial Institutions (2024)” which summarizes the monitoring results of not only large banking groups but also regional financial institutions, large securities companies, and large insurance companies, with the FSA’s recognition of issues and expectations.

The report mentions that the FSA will continue to promote the improvement of internal audits by proceeding with in-depth monitoring of financial institutions and that the FSA will consider the necessity of updating the “Current Situation and Issues for Improving Internal Audits of Financial Institutions” (hereinafter referred to as the “Current Situation and Issues”) based on the results of the monitoring and international trends regarding internal audit, including reconsideration of classification of internal audits levels (phases).

The FSA believes that “Current Situation and Issues” should be updated to be able to present viewpoints that encourage improvements in the internal audits of entire financial institutions and that secure trust in them from domestic and foreign stakeholders. In addition, “Current Situation and Issues” should be able to be utilized also by non-financial institutions and overseas financial regulators.

Based on discussions in the working group, the FSA will consider updating “Current Situation and Issues.”

Participating organizations

• Financial industry associations (Representative companies)
  • Japanese Bankers Association
  • Regional Banks Association of Japan
  • The Second Association of Regional Banks
  • The National Association of Shinkin Banks
  • Shinkumi Banks Association of Japan
  • National Association of Labour Banks
  • The Life Insurance Association of Japan
  • The General Insurance Association of Japan
  • Japan Securities Dealers Association
  • Japan Financial Services Association
  • Japan Payment Service Association
  • Japan Virtual and Crypto assets Exchange Association
  • The Institute of Internal Auditors Japan
  • External institutions such as consulting firms
  Participating organizations may be made additions to or changed.

Meeting materials

• The Fifth Meeting on May 21, 2025 

  YASHIKI Toshinori Director-General of the Strategy Development and Management Bureau Closing Remarks（PDF：296KB）

  Japanese

• The First Meeting on January 23, 2025 

  YASHIKI Toshinori Director-General of the Strategy Development and Management Bureau Opening Remarks（PDF：154KB）

  Japanese

Contact

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

Tel +81-(0)3-3506-6000