Featured Product

    JFSA Amends Guidelines for Banks, Issues Report on Sustainable Finance

    July 08, 2021

    The Financial Services Agency of Japan (JFSA) published draft amendments to the "comprehensive supervision guidelines for small- and medium-size and regional financial institutions," with the comment period ending on August 09, 2021. Additionally, JFSA finalized amendments to the "comprehensive supervision guidelines for major banks," which will be applicable from November 01, 2021. Also published was the feedback received on the draft guidelines for major banks. Additionally, the Expert Panel on Sustainable Finance, which JFSA had established in December 2020, published a report that summarizes key perspectives and cross-cutting issues on sustainable finance; the report highlights that broad discussion needs to be held on appropriate corporate disclosures regarding sustainability and notes the importance of this dialog among investors and financial institutions.

    The key points highlighted in the report include the following:

    • Following the revisions of the Corporate Governance Code (June 2021), the quality and quantity of climate-related disclosure should be enhanced based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations or an equivalent framework. 
    • Developing a “green international financial center” can contribute to more loans and investment towards sustainable societies in Asia and rest of the world. Institutional investors should enhance environmental, social, and governance (ESG) investments and engagement with investees. Asset managers should carefully explain the characteristics of an ESG-related investment trust at its establishment and distribution and be accountable for ESG aspects of the selected issues on an ongoing basis. JFSA should monitor asset managers in this regard.
    • A platform can be developed for practical information of ESG-related bonds, including green bonds and a mechanism that provides objective certification of the eligibility of ESG-related bonds.
    • Financial institutions need to support the transition of the real economy, integrating sustainability opportunities and risks into their business strategies and risk management. To support loan recipients and investees’ climate transition, financial institutions are expected to accumulate know-how, improve skills, and develop analytical tools. JFSA should continue to discuss with financial institutions the effective use of scenario analysis and encourage them to develop a risk management system for climate change.

     

    Comment Due Date: August 09, 2021

    Keywords: Asia Pacific, Japan, Banking, Securities, SME, Sustainable Finance, ESG, Climate Change Risk, Disclosures, Green Bonds, Transition Risk, TCFD Recommendation, JFSA

    Featured Experts
    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697