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

    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).

    May 23, 2022 WebPage Regulatory News
    News

    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.

    May 23, 2022 WebPage Regulatory News
    News

    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

    May 20, 2022 WebPage Regulatory News
    News

    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

    May 19, 2022 WebPage Regulatory News
    News

    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.

    May 19, 2022 WebPage Regulatory News
    News

    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.

    May 18, 2022 WebPage Regulatory News
    News

    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.

    May 17, 2022 WebPage Regulatory News
    News

    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.

    May 17, 2022 WebPage Regulatory News
    News

    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).

    May 13, 2022 WebPage Regulatory News
    News

    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.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206