Featured Product

    IMF Reports on 2019 Article IV Consultation with Japan and Philippines

    February 10, 2020

    IMF published reports under the 2019 Article IV consultations with Japan and Philippines. The IMF reports assess, among other areas, the soundness of financial sectors in these countries. For Japan, the IMF staff recommends strengthening of the crisis management and resolution framework for banks and introduction of an economic-value-based solvency regime for insurers. For Philippines, the key recommendations are related to the macro-prudential policy measures.

    Staff and selected issues reports on Japan. IMF Directors stressed the need to proactively strengthen the resilience of the banking sector in Japan. They encouraged the authorities to consider tightening macro-prudential policies and stand ready to activate the countercyclical capital buffer (CCyB). They also recommended continued efforts toward further improving financial sector supervision and regulation, the risk assessment process, and the macro-prudential policy toolkit. Directors were encouraged by progress made in implementing the 2017 Financial Sector Assessment Program (FSAP) recommendations. The report recommends that the Financial Services Agency in Japan, or JFSA, should implement some key outstanding recommendations of the 2017 FSAP:

    • As the financial cycle matures, the Authority should continue to strengthen its financial sector supervision and regulation, by intensifying the risk assessment process and completing the macro-prudential policy toolkit, to better identify and mitigate the build-up of systemic risk. 
    • The Authority should strengthen its crisis management and resolution framework, by extending the coverage of total loss-absorbing capacity requirements to all domestic systemically-important banks (D-SIBs). 
    • It should also continue to take steps toward introducing an economic-value-based solvency regime for the insurance sector. 
    • Also recommended is the continued strengthening of the oversight of virtual asset service providers by ensuring that they are subject to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) supervision, in line with the international standards.

    Staff and selected issues reports on Philippines. The main banking sector risks in the country relate to possible loan quality risks after a period of high credit growth episodes, external shocks, and concentrated exposures because of broader interlinkages among large borrowers not covered by standard large exposure limits under the Basel framework. The IMF assessment highlights that macro-prudential policy response should be proactive if risks of, and from, high credit growth increase again. BSP should timely activate the CCyB if risks of broad-based rapid credit growth reemerge; develop targeted macro-prudential measures, such as loan-to-value and debt-to-income caps; and tighten the macro-prudential measures if high credit growth risks are more sector-specific―for example, in the real estate sector. 

     

    Related Links

    Keywords: Asia Pacific, Japan, Philippines, Banking, D-SIBs, FSAP, Article IV, Macro-Prudential Policy, CCyB, Systemic Risk, IMF

    Featured Experts
    Related Articles
    News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News
    News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News
    News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793