Featured Product

    JFSA and BOJ Announce Additional Measures to Ease Impact of Pandemic

    July 09, 2020

    JFSA and BOJ announced additional measures in response to the COVID-19 pandemic. JFSA notified that the central government decided the second supplementary budget for financial year 2020 to strengthen cash flow support for companies, including expansion of the coverage of no-interest unsecured loans by private financial institutions. JFSA has issued requests to financial institutions to continue to offer loans to companies and has outlined possible relaxation of credit terms. The requests are related to support measures such as deferment of payments, alteration of loan conditions, provision of new loans, and implementation of the new loan program in collaboration with local governments and Credit Guarantee Corporations. In addition, JFSA issued a notice, along with questions and answers (Q&A), regarding the disclosure of corporate information concerning the impact of the COVID-19. This includes disclosure of additional information that enables users of financial statements to understand the assumptions that were made to derive the accounting estimates.

    At the Monetary Policy Meeting held in May 2020, the Policy Board of BOJ made the following decisions to further support financing mainly of firms, with a view to address the impact of COVID-19:

    • BOJ shall amend the principal terms and conditions of the "special funds-supplying operations to facilitate financing" in response to COVID-19.
    • BOJ shall amend the "special rules for member financial institutions of central organizations of financial cooperatives to use the special funds-supplying operations to facilitate financing."
    • BOJ shall amend the "principal terms and conditions for outright purchases of corporate bonds."

    BOJ also introduced a new fund-provisioning measure to further support financing, mainly of small and medium-size firms. This measure includes fund-provisioning against eligible loans such as interest-free and unsecured loans made by eligible counterparties based on the emergency economic measures of the government. In addition, BOJ decided to strengthen the special funds-supplying operations to facilitate financing in response to the COVID-19 crisis. The decision includes expanding the range of collateral in calculating the maximum amount of loans, increasing the number of eligible counterparties, and applying a positive interest rate to current account balances.

     

    Keywords: Asia Pacific, Japan, Banking, Securities, COVID-19, Credit Risk, Loan Guarantee, Disclosure, Corporate Bonds, Q&A, JFSA, BOJ

    Related Articles
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938