The Financial Services Agency (FSA), from the perspective of maintaining the stability of the financial system in Japan, conducts intensive monitoring of regional banks' securities investment, targeting those with large risk-taking in securities investment.
The report summarizes key points and observed cases during the monitoring process.
It is intended not only for the targeted financial institutions but also as a reference for risk management by other financial institutions (primarily those institutions with substantial risk exposure to securities investment).
The FSA will continue to encourage financial institutions’ enhancement of their securities investment management and risk management systems and demonstration of effective risk governance through monitoring focused on such issues in the future. We expect financial institutions to put effort into further improving their risk management practices.
