Japan to Enhance Surveillance on Super-Long Mortgages

Tokyo, Sept. 15 (Jiji Press)--Japan's Financial Services Agency said Tuesday that it will closely monitor financial institutions to ensure consumer protection amid the growing use of ultra-long-term mortgages as interest rates and housing prices rise.

The popularity of 40- to 50-year mortgages is growing among borrowers, especially young people, as they seek to reduce their monthly repayment burden.

The FSA plans to examine whether financial institutions' screening systems adequately assess borrowers' repayment capacity.

Also among its policy priorities for the year through next June, the agency will check the impact of rising interest rates on financial institutions' deposit and loan operations, as well as their risk management for loans extended to foreign funds and data centers.

Regarding irregularities at financial institutions, the FSA stressed that it will analyze the root causes by examining management attitudes and corporate culture, rather than attributing responsibility solely to individuals.

[Copyright The Jiji Press, Ltd.]