General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 19, 2017

IMF published the concluding statement of the 2017 Article IV Mission in Japan. The key topics covered in this concluding statement are recent economic developments and policies, outlooks, risks, structural reforms, and policies to safeguard financial stability in Japan.

Enhanced financial oversight frameworks would help contain emerging risks. Internal processes need to be further developed to support full risk-based prudential supervision, and corporate governance needs to be strengthened across the banking and insurance sectors. Moreover, capital requirements need to be more tailored to individual bank risk profiles. Further steps should be taken to implement an economic-value-based solvency regime for the insurance sector, as certainty about the future regime would help companies to adjust their business and investment strategies. The macro-prudential framework could be further strengthened by clarifying the mandate of the Council for Cooperation on Financial Stability and proactively expanding the macro-prudential toolkit.

  

The crisis management and resolution framework could be strengthened further. The complexity of the framework and ambiguities regarding the circumstances under which different regimes of the framework would be used, could prove challenging for implementation, and may thereby fuel expectations of public support. Further steps to ensure that supervisory powers are deployed without delay should be embedded more firmly in the authorities’ framework for early intervention. Expansion of the resolution toolkit, enhancement and clarification of the legal framework (including its extension to central counterparties), and improvements in operational aspects would improve authorities’ readiness and help steer market expectations and incentives. The authorities are encouraged to further engage with bank boards and senior management to ensure banks fully understand the implications of underlying trends for future viability, and act promptly to facilitate the exit of unviable firms. They are also encouraged to facilitate the transition of regional banks to higher fee-based income.

 

The concluding statement describes the preliminary findings of IMF staff at the end of an official staff visit, in most cases to a member country. The views in this statement also reflect the findings of the Financial Sector Assessment Program (FSAP), which was conducted by the IMF during September 2016-April 2017. Countries with financial sectors that are considered systemically important, such as Japan, must undertake a mandatory stability assessment every five years.

 

Related Link: Concluding Statement

Keywords: Asia Pacific, IMF, Japan, Insurance, Banking, Financial Stability, Article IV, FSAP

Related Insights
News

IAIS Publishes Drafts of Revised ICP 8, ICP 15, ICP 16, and ICP 20

IAIS published the drafts of revised Insurance Core Principles on Public Disclosure (ICP 20), Investments (ICP 15), Enterprise Risk Management for Solvency Purposes (ICP 16), and Risk Management and Internal Controls (ICP 8), along with a revised draft of the glossary on enterprise risk management (ERM).

November 14, 2018 WebPage Regulatory News
News

MAS Amends Notice 637 on Capital Adequacy Requirements in Singapore

MAS published the final, revised Notice 637 on the risk-based capital adequacy requirements in Singapore.

November 13, 2018 WebPage Regulatory News
News

ESMA Updates Q&A on Implementation of CSD Regulation and MAR

ESMA updated questions and answers (Q&A) documents on the implementation of the Central Securities Depository (CSD) Regulation and Market Abuse Regulation (MAR).

November 12, 2018 WebPage Regulatory News
News

FSB Finalizes and Publishes the Cyber Lexicon

FSB published a cyber lexicon, following the public consultation earlier this year.

November 12, 2018 WebPage Regulatory News
News

SRB Updates Liability Data Reporting Template for 2019

SRB published version 2.7.1 of the Liability Data Reporting (LDR) Template.

November 12, 2018 WebPage Regulatory News
News

ECB to Conduct Comprehensive Assessment of Six Bulgarian Banks

ECB will undertake a comprehensive assessment of six Bulgarian banks. The exercise, comprising an asset quality review and a stress test, follows Bulgaria’s submission of a request to establish close cooperation with ECB on July 18, 2018.

November 12, 2018 WebPage Regulatory News
News

IMF Publishes Reports on the 2018 Article IV Consultation with Chile

IMF published its staff report and selected issues report under the 2018 Article IV consultation with Chile.

November 09, 2018 WebPage Regulatory News
News

PRA Issues PS27/18 on Implementing the Extension of SM&CR to Insurers

PRA published the policy statement PS27/18, which provides feedback to responses to the consultation paper CP20/18, on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers (Part 2).

November 09, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News
News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2204