meta_id 3161978

On May 18, 2026, Japan's Financial Services Agency (FSA) opened a public consultation on proposed amendments to banking and financial institution regulations. The amendments implement provisions from the Law on Procedures for Debt Adjustment Between Business Operators and Financial Institutions for Smooth Business Restructuring, which was enacted on June 13, 2025. The proposed regulatory changes clarify that business restructuring companies established under the new early business restructuring procedure can be designated as subsidiaries of banks and other financial institutions. The FSA is amending regulations across multiple financial sectors, including the Banking Act Enforcement Regulations, Credit Association Act Enforcement Regulations, Labour Bank Act Enforcement Regulations, Agricultural Cooperative Act Regulations, Fishery Cooperative Act Regulations, and Insurance Business Act Enforcement Regulations. The FSA is also updating comprehensive supervisory guidelines for major banks, small and regional financial institutions, cooperative financial institutions, fishery cooperative credit operations, and insurance companies to align with these regulatory changes. The consultation period closes on June 17, 2026, at 5:00 PM Japan Standard Time. Stakeholders can submit comments via post or through the e-Gov website. Comments must include the respondent's name, occupation or business type, contact information, and reasoning. Individual responses to comments will not be provided. Following the consultation period, the FSA will proceed through necessary procedures before publishing and implementing the final regulations.