(Excerpt)
(Tuesday, July 1, 2025, 11:19 am to 11:28 am)
[Opening remarks:]
- Minister)
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First, I would like to say a few words on the occasion of the 25th anniversary of the establishment of the Financial Services Agency.
Today marks the 25th anniversary of the establishment of the FSA, which was formed through the merger of the former Financial Supervisory Agency and the Financial System Planning Bureau of the Ministry of Finance.
I would like to express our sincere gratitude to persons concerned for their understanding and cooperation in financial administration.
The mission of the FSA is as stated in the document distributed to you, namely to enhance national welfare, and the priorities of the administration have changed with the times. Looking back, 25 years ago when the FSA was established, the priority was to stabilize the financial system by restoring trust in financial administration and resolving non-performing loans.
On the other hand, although Japan’s financial system is generally stable at present, it faces uncertainty in domestic and overseas economic and financial markets and structural changes in the economy and society as the transition to a “world with interest rates” progresses.
In addition, amid a trend of population decline and aging, strengthening “regional financial capacity” to support regional economies is also a very important issue. By the end of this year, we will formulate and strongly promote a plan to strengthen regional financial capacity, which packages related measures.
Furthermore, in recent years, financial services and transactions utilizing digital technologies such as AI and blockchain have been rapidly expanding, and we believe that the areas in which the FSA is expected to play a role are also expanding.
Supporting these diverse financial sectors from an administrative perspective is precisely the mission of the FSA. To fulfill this mission, the Agency and all of its staff will continue to make every effort. We appreciate your understanding and cooperation in financial administration.
[Questions and answers:]
- Q.
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This question relates to the FSA’s organizational restructuring. I understand that there are moves to integrate the Monitoring Division, formerly the Inspection Bureau, and the Supervision Bureau. Please explain the purpose and positioning of these moves.
- A.
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The monitoring of major banks, which has been conducted under the Director-General of the Strategy Development and Management Bureau, will be transferred to the Supervision Bureau.
Specifically, monitoring of major banks will be conducted in conjunction with supervision, led by Banking Business Division I of the Supervision Bureau. In addition, we plan to monitor specialized cross-cutting themes such as money laundering and conduct risks under the supervision of the Director-General of the Supervision Bureau, with the Vice Commissioner for Strategy Development and Management directing and coordinating the efforts of each division in order to ensure more integrated and effective operations. In terms of supervision and monitoring, coordination is essential, starting with the sharing of issues. Therefore, under the direction of the Director-General of the Supervision Bureau, we intend to review the current system with a view to ensuring more integrated operations and deeper coordination among relevant bureaus, including dialogue with individual financial institutions, so that supervision and monitoring can be made more effective and efficient. - Q.
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Starting today, a new department called the Asset Management Business Division will be established within the FSA. Please share your current assessment of the status of Japan’s initiatives toward becoming a leading asset management center, as well as your expectations for the role of the Division.
- A.
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The Asset Management Business Division is currently working on expanding the NISA program as part of initiatives toward becoming a leading asset management center.
At the same time, we are also promoting financial and economic education consecutively. In order to further promote these initiatives, we have established the Division to take the lead in these efforts. We expect it to play a central role in promoting the shift from savings to investment in Japan. - Q.
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You mentioned the changing role of the FSA. When it was first established, its main focus was on the disposal of non-performing loans, and at that time it was often mockingly referred to as the Financial Punishment Agency. In recent years, as former Minister Aso mentioned, there has been talk of establishing a Financial Nurturing Agency. Considering the future role of the FSA, what do you think it should strive for? Also, if you were to give it a name, what would you call it?
- A.
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As I mentioned earlier, we have been addressing the issues of each era, and 25 years ago, the financial situation at that time was, in a sense, very unstable. I believe that addressing non-performing loans was an urgent issue, and recently, as we have been working to stabilize such issues one by one, the Bank of Japan has begun to raise interest rates and reduce its purchases of government bonds. In light of these changes in policy, the FSA will continue to provide strong support to ensure that the necessary roles are fulfilled. In addition, as I mentioned earlier, new fields such as AI, blockchain, and digital technologies are expanding significantly, and the number of people involved in these fields is growing not only among traditional financial institutions but also among non-financial institutions. In this expanding environment, I believe that the FSA will be required to consider how to build a stable financial system as a whole.
While it is difficult to assign a name to this, I believe that a name will be historically established as we overcome these challenges.
