Publication Of "Japan Financial Services Agency Analytical Notes (2025.10)"

The FSA published the English version of "FSA Analytical Notes (2025.10)". PDF full text

As financial institutions’ business environments and profit structures change, it is important to understand economic and market trends based on data, and to accurately grasp the business conditions of individual financial institutions and also the resilience and vulnerabilities of the financial system as a whole. From this perspective, the FSA has been focusing on the utilization of granular data, such as transaction-level bank loan data and financial data on individual corporations. Some case examples of data analyses using such granular data are published as a series of reports titled “FSA Analytical Notes.”

This issue contains "Analysis of Defaults in Housing Loans by Regional Banks".

Analysis of Defaults in Housing Loans by Regional Banks

This paper attempts to analyze the defaults in housing loans extended by regional banks, based on borrower classifications, using granular loan data. The analysis shows default rate levels for attributes including region, loan-origination year, and lending period. It also demonstrates that default rates vary depending on loan characteristics, such as the length of the lending period.

Enhancing the use of data in financial supervision and policy-making is a medium- to long-term agenda. The FSA will continue to build its data analysis capabilities and data infrastructure.

* Unless otherwise noted, the figures and tables in this report were prepared by the FSA.

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