Japan Mulling Integrated Financial Inspections by FSA, BOJ
Tokyo, Oct. 21 (Jiji Press)--The Japanese government is considering having the Financial Services Agency and the Bank of Japan conduct inspections on financial institutions’ business conditions, currently done respectively, in an integrated manner, according to administrative and regulatory reform minister Taro Kono.
“Double inspections have been a burden on financial institutions,” Kono told a press conference on Tuesday. “Integrated operations would be very important.”
The integration proposal, which is part of the efforts by Prime Minister Yoshihide Suga’s government to eliminate vertically segmented administrative systems, is expected to be put together shortly by the ruling Liberal Democratic Party’s Research Commission on the Finance and Banking Systems.
Based on the proposal, the government will decide on the specifics, including ways to allow the FSA and the BOJ to share asset and other data submitted to them by financial institutions.
The FSA and the BOJ have been looking into the financial conditions and the management soundness of banks and other financial institutions on a regular basis. It has been pointed out as a problem that the work to prepare materials for submission becomes a heavy burden on financial institutions when the inspections by the FSA happen to coincide with those by the BOJ.
[Copyright The Jiji Press, Ltd.]