FSA Weekly Review No.459 October 7, 2021

FSA Weekly Review No.459: October 7, 2020

What’s New on the FSA Website

Week of September 24, 2021 - September 30, 2021

This page contains the latest in events, developments, and updates to the FSA website.

Press Conferences

September 29, 2021	Press Conference by the Minister of State for Financial Services (August 31, 2021)
September 29, 2021	Press Conference by the Minister of State for Financial Services (August 20, 2021)

Public Comments

September 28, 2021	Publication of the draft amendments to the regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy <Summary> The FSA proposed the draft amendments to the regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy, particularly in regard to credit risk, CVA (Credit Valuation Adjustment) risk, and market risk. The proposal intends to implement the finalized Basel III framework (which refers to a consolidated package of the "Basel III framework" (December 2017) and the "market risk capital framework (minimum capital requirements for market risk)" (January 2019)). In particular, the proposal intends to implement the finalized Basel III framework from March 2023 for all internationally active banks, as well as non-internationally active banks that use internal model-based approaches for measuring risks, while it intends to allow non-internationally active banks that only use standardized approaches, to defer their implementation until March 2024. The proposal is aimed at maintaining the financial intermediation that supports sustainable economic growth and ensuring proper level of capital requirements commensurate with risk exposure. (This public comment is available in Japanese) https://www.fsa.go.jp/news/r3/ginkou/20210928-2.html
September 24, 2021	Publication of the finalized "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements" <Summary> The FSA finalized the "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements." The amendments mainly provide technical amendments to the said Regulation and others in accordance with the amendments to the ASBJ’s Implementation Guidance on an Accounting Standard for Fair Value Measurement (ASBJ Guidance No.31), which was published on June 17, 2021. The amendments were enforced on September 24, 2021. (This public comment is available in Japanese) https://www.fsa.go.jp/news/r3/sonota/20210924.html

September 28, 2021

Publication of the draft amendments to the regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy
<Summary>
The FSA proposed the draft amendments to the regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy, particularly in regard to credit risk, CVA (Credit Valuation Adjustment) risk, and market risk.
The proposal intends to implement the finalized Basel III framework (which refers to a consolidated package of the "Basel III framework" open new window

(December 2017) and the "market risk capital framework (minimum capital requirements for market risk)" open new window

(January 2019)).
In particular, the proposal intends to implement the finalized Basel III framework from March 2023 for all internationally active banks, as well as non-internationally active banks that use internal model-based approaches for measuring risks, while it intends to allow non-internationally active banks that only use standardized approaches, to defer their implementation until March 2024.
The proposal is aimed at maintaining the financial intermediation that supports sustainable economic growth and ensuring proper level of capital requirements commensurate with risk exposure.

(This public comment is available in Japanese)
https://www.fsa.go.jp/news/r3/ginkou/20210928-2.html open new window

September 24, 2021

Publication of the finalized "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements"
<Summary>
The FSA finalized the "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements." The amendments mainly provide technical amendments to the said Regulation and others in accordance with the amendments to the ASBJ’s Implementation Guidance on an Accounting Standard for Fair Value Measurement (ASBJ Guidance No.31), which was published on June 17, 2021.
The amendments were enforced on September 24, 2021.

(This public comment is available in Japanese)
https://www.fsa.go.jp/news/r3/sonota/20210924.html open new window

Press Releases

Councils

September 30, 2021	Publication of the agenda and handouts of the second meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council <Summary> The FSA published the agenda and handouts of the second meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council, which was held on October 1, 2021. (This press release is available in Japanese) https://www.fsa.go.jp/singi/singi_kinyu/disclose_wg/siryou/20211001.html
September 30, 2021	The second meeting of the Working Group on Corporate Disclosure of the Financial System Council

September 30, 2021

Publication of the agenda and handouts of the second meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council
<Summary>
The FSA published the agenda and handouts of the second meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council, which was held on October 1, 2021.

(This press release is available in Japanese)
https://www.fsa.go.jp/singi/singi_kinyu/disclose_wg/siryou/20211001.html open new window

September 30, 2021

The second meeting of the Working Group on Corporate Disclosure of the Financial System Council

Banks

September 30, 2021	Overview of modifications to lending conditions by financial institutions <Summary> The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10, 2020, to August 31, 2021. * The majority of the data reflects the data until August 31, 2021, whereas the data of cooperative financial institutions reflects the data until June 30, 2021. (This press release is available in Japanese) https://www.fsa.go.jp/ordinary/coronavirus202001/kashitsuke/20200430.html
September 28, 2021	Approval of the implementation plan filed by THE FUKUHO BANK, LTD. in regard to the application for the "fund-grant system" pursuant to the "Act on Special Measures for Strengthening Financial Functions" <Summary> Upon receipt of the implementation plan from THE FUKUHO BANK, LTD. in regard to the application for the "fund-grant system" pursuant to the "Act on Special Measures for Strengthening Financial Functions," the FSA approved the plan after conducting a review and assessment from the perspective of the sustainability of providing core financial services to their services users. (This press release is available in Japanese) https://www.fsa.go.jp/news/r3/ginkou/20210928/20210928-1.html
September 28, 2021	Publication of the implementation report of the Business Strengthening Plans (as of March 2021) <Summary> The FSA published the implementation report of the Business Strengthening Plans (as of March 2021) pursuant to the "Act on Special Measures for Strengthening Financial Functions." (This press release is available in Japanese) https://www.fsa.go.jp/news/r3/ginkou/20210928/20210928-4.html
September 28, 2021	Approval of the Business Strengthening Plans of financial institutions <Summary> The FSA approved the Business Strengthening Plans of financial institutions listed below, pursuant to the "Act on Special Measures for Strengthening Financial Functions." ・THE MICHINOKU BANK, LTD. ・San ju San Financial Group, Inc., alongside The Daisan Bank, Ltd. and San ju San Bank, Ltd. ・THE TOWA BANK, LTD. ・THE BANK OF KOCHI, LTD. ・FIDEA Holdings Co. Ltd., alongside The Hokuto Bank, Ltd. ・The Miyazaki Taiyo Bank, Ltd. ・Jimoto Holdings, Inc., alongside Kirayaka Bank, Ltd. and THE SENDAI BANK, LTD. ・Yamanashi Kenmin Shinkumi Bank ・Gunmamirai Shinkumi Bank ・Kesennuma Shinkin Bank ・Ishinomaki Shinkin Bank ・Abukuma Shinkin Bank ・Soso Gojou Shinkumi Bank ・Iwaki Shinkumi Bank ・Nasu Shinkumi Bank (This press release is available in Japanese) https://www.fsa.go.jp/news/r3/ginkou/20210928/20210928-2.html
September 28, 2021	Publication of the outlines of proceedings of the 26th and the 27th meetings as well as the minutes of the 22nd and the 23rd meetings of the Examination Board on Strengthening of Financial Functions <Summary> The FSA published the outlines of proceedings of the 26th and the 27th meetings as well as the minutes of the 22nd and the 23rd meetings of the Examination Board on Strengthening of Financial Functions pursuant to Article 8 and 9 of the Operational Rules for the Board, respectively. (This press release is available in Japanese) https://www.fsa.go.jp/singi/soff/gijiyoshi/20210902.html https://www.fsa.go.jp/singi/soff/gijiyoshi/20210909.html https://www.fsa.go.jp/news/r3/ginkou/20210928/20210928-3.html
September 24, 2021	The fifth project selected for "Enterprise System and Frontrunner Support-Hub" <Summary> The FSA accepted an application from THE SAIKYO BANK, LTD. as the fifth project which fulfilled all requirements for the FSA to provide its support through "Enterprise System and Frontrunner Support-Hub." The Bank intends to replace its current enterprise system, a shared-use system running on a mainframe, with a cloud-based package system that has already demonstrated success in operation in a certain regional bank, so that the Bank can develop its own system without relying on system vendors, reduce development costs, and flexibly incorporate new services, such as FinTech-based services. With the renewal/replacement of the system, the bank also intends to shift toward a consultancy-oriented operational structure, by promoting the operational efficiency in terms of adopting the business practices from a certain regional bank, the accumulation of IT expertise, and staff redeployment, as well as human resources development. (This press release is available in Japanese) https://www.fsa.go.jp/news/r3/sonota/20210924-2.html

Securities

September 30, 2021	Publication of a report on trends in high-speed trading activities <Summary> The FSA has published a report on trends in high-speed trading activities including the number of orders placed by high-speed traders and trading values thereof. The data report will be updated on a quarterly basis. The FSA has been promoting registration of high-speed traders as well as assessing the actual status of high-speed trading activities ever since the registration system was introduced for those who engage in high-speed trading of stocks and others, following the amendments to the "Financial Instruments and Exchange Act" in May 2017 (effective 2018). (This press release is available in Japanese) https://www.fsa.go.jp/news/r2/sonota/20210630/20210630.html

September 30, 2021

Publication of a report on trends in high-speed trading activities
<Summary>
The FSA has published a report on trends in high-speed trading activities including the number of orders placed by high-speed traders and trading values thereof. The data report will be updated on a quarterly basis.
The FSA has been promoting registration of high-speed traders as well as assessing the actual status of high-speed trading activities ever since the registration system was introduced for those who engage in high-speed trading of stocks and others, following the amendments to the "Financial Instruments and Exchange Act" in May 2017 (effective 2018).

(This press release is available in Japanese)
https://www.fsa.go.jp/news/r2/sonota/20210630/20210630.html open new window

Others

September 30, 2021	FSA updated Information on COVID-19 (Novel Coronavirus)
September 29, 2021	Updated statistics of money lending business

Site Map

About FSA Page list Open: Ministerial Team; Organization; Location; Pamphlet; Open Policy Lab
Press Releases & Public Relations Page list Open: Press Releases; Press Conferences; Official Statements; FSA Weekly Review & ACCESS FSA; Speeches; For Financial Users; Others; Archives
Policies & Councils Page list Open: Policies; Councils
Laws & Regulations Page list Open: Name of Laws and Regulations(PDF); Recent Changes (Legislation, Ordinances, Guidelines); Guidelines; Financial Instruments and Exchange Act; Financial Monitoring Policy; Public Comment; No-Action Letter System; Procedures concerning Foreign Account Management Institutions
Regulated Institutions Page list Open: List of Institutions; Administrative Action; Statistics; For those engaging in High Speed Trading; To Operators of Specially Permitted Businesses for Qualified Institutional Investors, etc.; Asia Region Funds Passport (ARFP)
FSA Weekly Review & ACCESS FSA Page list Open: Back Number (2022); Back Number (2021); Back Number (2020)