Bank of Japan

Capital Adequacy

Recession Fears Prompt Japan to Stress Test Major Financial Firms

By Editors | 22/10/2019

The BOJ and FSA will jointly coordinate stress tests on Japan’s three G-SIBs and four D-SIBs to assess how capital and liquidity could be affected if stocks fell and the yen spiked.

Structural Regulation

BOJ Deputy Governor Calls for Collective Action on LIBOR Transition

By Manesh Samtani | 13/10/2019

LIBOR’s permanent discontinuation will be one of the “most significant events in global financial history”, BOJ deputy governor Masayoshi Amamiya said at ASIFMA’s Annual Conference.

Credit Risk

Japan Regulators Seek Data on Financial Firms’ Risky Investments

By Editors | 10/09/2019

The BOJ and FSA are collecting data on financial firms’ holdings of collateralised loan obligations and leveraged loans to understand the risks they present.

Trading & Investment

BOJ Publishes Consultation on JPY Interest Rate Benchmarks

By Editors | 03/07/2019

The consultation paper presents and evaluates five options that can be used as alternative benchmarks upon transition and as fallback replacement benchmarks.

Liquidity Risk

Japan Opposes LCR for US Branches of Foreign Banks

By Manesh Samtani | 26/06/2019

The BOJ, FSA and JBA say standardised liquidity requirements for US branches of foreign banking organisations will promote market fragmentation and create global risks.

Clearing & Post-Trade

SFTR: An Opportunity to Upgrade, Automate

By Manesh Samtani | 17/06/2019

DTCC’s Val Wotton and Oliver Williams explain the challenges SFTR presents in Asia, and how firms can best prepare in the lead-up to implementation starting in April 2020.

Payments & Settlements

Project Stella: DLT Can Improve Cross-Border Payment Security

By Editors | 06/06/2019

The BOJ-ECB phase three study says DLT can improve security in cross-border payments by using payment methods that synchronise payments and lock funds along the payment chain.

Anti-Money Laundering

Japan FSA Orders Seibu Shinkin Bank to Improve Loan Screening

By Editors | 27/05/2019

The bank reportedly extended loans to persons connected to ‘antisocial forces’, and potentially executed over 100 fraudulent real estate loans.

AI Risk & Governance

BOJ Paper Considers Security Risks of Machine Learning Systems

By Editors | 27/05/2019

The paper classifies machine learning systems into 12 types and discusses the vulnerabilities, threats and corresponding countermeasures for each, focusing on the financial sector.