General Information & Client Service
  • 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 Articles

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 16, 2019 WebPage Regulatory News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for April 2019

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

April 12, 2019 WebPage Regulatory News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News

OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR Disclosures

OSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2920