JFSA Proposes Basel Rule Timelines; BOJ Updates COVID Relief Measures
The Financial Services Agency of Japan (JFSA) proposed changes to the regulatory notices pertaining to leverage ratio requirements. The proposal intends to extend until the end of March 2024 (for another two years) the temporal measure to exclude the outstanding balance of financial institutions' current accounts at the Bank of Japan (BOJ) from the calculation of leverage ratio exposures. Moreover, JFSA proposed that non-internationally active banks, which only use standardized approaches, may defer the implementation of the finalized Basel III framework until the end of March 2025. The feedback period on the proposals ends on January 24, 2022. JFSA also issued a letter to the Chair of the Board of Trustees of the IFRS Foundation welcoming the formation of the International Sustainability Standards Board (ISSB). Finally, the Bank of Japan (BOJ) updated certain relief measures in response to the COVID-19 pandemic, with these measures becoming effective on April 01, 2022.
The amendments have been issued to the following support measures and programs:
- Principal terms and conditions of the special funds supplying operations to facilitate financing—BOJ is partially extending the program for a period of six months until the end of September 2022.
- Special rules for member financial institutions of central organizations of financial cooperatives to use the special funds-supplying operations to facilitate financing—The special rules shall be valid through September 30, 2022.
- Principal terms and conditions of complementary deposit facility
- Principal terms and conditions of the interest scheme to promote lending
Keywords: Asia Pacific, Japan, Banking, Basel, Leverage Ratio, ISSB, COVID-19, Credit Risk, SME, Lending, Regulatory Capital, Standardized Approach, ESG, Sustainable Finance, JFSA, BOJ
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
ECB Recommends Changes to Proposed Rules on Artificial IntelligenceRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
