TITLE: Japan's Financial Services Authority Amends Capital Adequacy Standards for Financial Institutions
BODY:
Japan's Financial Services Authority (FSA) published amendments to capital adequacy standards across multiple categories of financial institutions through the Official Gazette. The amendments modify criteria used by banks, bank holding companies, credit unions, credit cooperatives, labour banks, agricultural cooperatives, and fishery cooperatives to assess the adequacy of their capital in relation to their held assets.
The FSA amended standards under the Banking Act (Article 14-2), the Banking Act (Article 52-25), the Credit Union Act (Article 89), the Financial Business by Cooperatives Act (Article 6), and the Labour Bank Act (Article 94). These amendments establish revised benchmarks for evaluating capital adequacy across Japan's diverse financial sector. The changes also modify disclosure requirements regarding capital adequacy status for institutions including the Central Bank for Commercial and Industrial Cooperatives (Shokochukin Bank), the Central Bank for Agriculture and Forestry (Norinchukin Bank), agricultural cooperatives, and fishery cooperatives.
Additionally, the FSA amended criteria for ultimate designated parent companies and their subsidiaries to assess capital adequacy. The amendments include modifications to implementing regulations under the Banking Act (Article 19-2), the Credit Union Act (Article 132), the Financial Business by Cooperatives Act (Article 69), and the Labour Bank Act (Article 114), specifying matters the FSA director-general determines regarding capital adequacy status. Amendments also address disclosure items for agricultural cooperatives, fishery cooperatives, and Norinchukin Bank concerning capital adequacy. Certain amendments involved coordination with the Ministry of Economy, Trade and Industry, the Ministry of Finance, and the Ministry of Health, Labour and Welfare.
REFERENCES:
Official Gazette (Japan) - Financial Services Authority notices on capital adequacy standards amendments