FSA Weekly Review No.493

- the "Cabinet Office Order on Special Measures for Strengthening Financial Functions"

- the "Order on Special Measures for Strengthening Financial Functions of Labor Banks and Federations of Labor Banks," and

- the "Order on Special Measures for Strengthening Financial Functions of Agricultural and Fishery Cooperatives." 

(a)Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions

(b)Comprehensive Guidelines for Supervision of Major Banks, etc.

(c)Comprehensive Guidelines for Supervision of Cooperative Financial Institutions (provisional English title)

(d)Comprehensive Guidelines for Supervision of Fisheries Cooperatives Engaging in Credit Business (provisional English title), and

(e)Comprehensive Guidelines for Supervision of Trust Companies, etc. (provisional English title).

(1)Following the revision of the key performance indicators (KPIs) to evaluate capital-participating-banks' efforts to support corporate borrowers' core businesses, in response to the amendments to the "Cabinet Office Order on Special Measures for Strengthening Financial Functions," the proposal intends to set out in the guidelines* that the revised indicators will also be deemed as supervisory measures for ensuring the implementation of the corporate borrowers' business strengthening plans [*the amendments will be reflected in the aforementioned comprehensive guidelines (a), (c), and (d)]

(2)In response to the amendments to the "Cabinet Office Order on Financial Instruments Business," the proposal intends to provide amendments to the guidelines* in regard to the firewall regulations on sharing corporate clients' non-public information held by a listed company, etc. [*the amendments will be reflected in the comprehensive guidelines (c) and (d)]

(3)Based on inquiries and requests from financial institutions and the Local Finance Bureaus, the proposal intends to set forth the following in the guidelines,*

- to clarify the screening/evaluation criteria and approach for approval of establishment, etc. of subsidiaries, including "entities aimed at enhancing their non-core businesses and/or core banking businesses," and

- to abolish some of the related forms for the said approval, as well as to abolish some of the administrative report forms used at the Local Finance Bureaus.

[*the amendments will be reflected in all of the aforementioned comprehensive guidelines].
 

*The Expert Panel is composed of business, financial, and academic experts with observers of officials from pertinent ministries and agencies. The FSA (Strategy Development Division, Strategy Development and Management Bureau) serves as the secretariat.