Bank of Japan

Capital / Liquidity

BOJ Expands Merger Incentives to Include Community Lenders

By Editors | 03/01/2021

The BOJ will pay an additional 0.1% interest to smaller lenders that decide to merge, integrate their businesses, or meet overhead reduction targets.

BOJ Extends SME Lending Scheme, Pledges Continued Monetary Easing

By Editors | 23/12/2020

The central bank has extended its SME lending programme by six months and removed its upper limit of JPY 100 billion per institution.

Fintech / Regtech

Consortium of Japanese Firms to Test Digital Currency in April

By Sanday Chongo Kabange | 24/11/2020

The consortium, which includes Japan’s three megabanks as members, aims to address a lack of interoperability between digital payment platforms in the country.

Capital / Liquidity

BOJ Offers Interest Incentive for Regional Banks to Merge

By Editors | 10/11/2020

Regional banks can earn the interest rate by meeting certain overhead reduction targets or by agreeing to a merger with another bank.

Market Infrastructure

Japan Lawmakers to Propose Streamlining FSA, BOJ Bank Inspections

By Editors | 22/10/2020

Lawmakers reportedly plan to propose that the FSA and BOJ create a committee to address complaints from FIs concerning an overlap between the two agencies in bank inspections.

Market Infrastructure

About Half of Global FX Market Exposed to Settlement Risk

By Margaret Law | 15/10/2020

Without immediate action, FX settlement risk will continue to accumulate and introduce vulnerabilities into the global financial system, says Margaret Law at CLS.

Fintech / Regtech

BOJ to Commence CBDC Testing as Early as April 2021

By Editors | 12/10/2020

A proof of concept will take place over two phases, followed by a possible pilot programme involving private payment service providers and end-users.

Big Picture

BIS Report Outlines Common Foundation for Retail CBDCs

By Editors | 11/10/2020

Any decision to launch a CBDC would depend on an informed judgment that the risks can be managed, including the risk of disintermediating banks or enabling ‘digital runs’.

Capital / Liquidity

Japan: Bank Stress Tests to Use Covid-19 as Baseline Scenario

By Editors | 08/10/2020

The BOJ and FSA jointly stress-tested banks using a common scenario for the first time in December. This year’s stress tests will use the Covid-19 pandemic as the common scenario.