FSA publishes the third progress report on its efforts toward “Better Regulation”

On July 13, 2009, the Financial Services Agency (FSA) published the third progress report on its efforts toward “Better Regulation.” (PDF:68KB)

The FSA has been engaged in an initiative to improve the quality of financial regulation (Better Regulation) since the summer of 2007.

Since then, the global financial market turmoil triggered by the U.S. subprime mortgage problem developed into a world-wide financial crisis, in particular, following the collapse of a major U.S. investment bank, Lehman Brothers, in September 2008. Amid the drastically changing environment for financial regulation, the FSA has strived to accurately grasp and analyze the current situation, and has implemented various types of measures in a short period of time, keeping its viewpoints regarding “Better Regulation” in mind when carrying out crisis response measures.

During this past year, the FSA has continued its own initiatives to further promote Better Regulation in conducting inspection and supervision, and to move ahead with it into the future.

This report reaffirms the significance of Better Regulation amid the changing environment for financial regulation based on an examination of the crisis response measures, and describes the progress made with regard to the FSA's efforts for Better Regulation in inspection and supervision between May 2008 and July 2009.

In compiling this report, the second questionnaire survey was conducted on the entities subject to supervision by the FSA.