Japan

Emerging Prudential Risks

BOJ Calls on Banks to Be Extra Vigilant in Current Environment

By Thisanka Siripala | 25/04/2025

Banks could see volatility in their stock prices, more defaults by client firms, and risks from exposures to foreign non-banks.

Trading & Investment

TSE Pushes for Lower Minimum Investment Threshold

By Thisanka Siripala | 25/04/2025

The Tokyo Stock Exchange will “encourage” listed companies to reduce the minimum amount required to invest in their shares.

Market Abuse

JSDA Proposes Rule Changes to Enhance Insider Trading Controls

By Thisanka Siripala | 24/04/2025

The proposed changes would require firms to match customer data against a new database four times a year from May 2026.

Structural Regulation

JSDA Finalises Rule Changes to Accommodate Unlisted Securities Services

By Thisanka Siripala | 24/04/2025

JSDA updated 15 sets of self-regulatory rules to address law changes that allow special brokerage services for unlisted securities.

Tokenisation

JSDA Revises OTC Rules to Accommodate Security Tokens

By Thisanka Siripala | 24/04/2025

The rule revisions add trust beneficiary securities to the J-Ships programme and clarify procedures for issuing security tokens.

Credit Risk

Japan Calls on FIs to Help Businesses Overcome US Tariffs

By Thisanka Siripala | 23/04/2025

Banks are asked to offer flexible loan repayments and expand the use of safety net loans. The FSA will increase loan monitoring surveys.

Structural Regulation

Japan FSA Proposes Revisions to Clarify New Business Lending Law

By Thisanka Siripala | 23/04/2025

Draft guidelines clarify that lenders holding an ‘enterprise value security interest’ in businesses cannot dictate employment conditions or workforce layoffs.

Climate Risk

EBA’s ESG Risk Guidelines Present Heavy Burden for Japan Banks

By Thisanka Siripala | 23/04/2025

The JBA said the Japanese banks will struggle to implement the EBA’s ESG risk management and scenario analysis guidelines by the January 2026 implementation date.

Market Risk

Japan FSA Raises Alarm Over Hidden Losses in Structured Loans

By Thisanka Siripala | 22/04/2025

Structured loans which bundle JGBs with derivatives have allowed regional banks to avoid marking-to-market or publicly disclosing losses as interest rates have risen.