Easing of large-exposure lending regulations for regional banks is expected to expand funding for AI data centers and renewable energy projects. Questions have been raised over the inconsistency between the BOJ’s rate hikes and the government’s expansionary fiscal policy.
The Financial Services Agency has indicated a policy of easing large-exposure lending regulations for regional banks, with the aim of increasing funding for growth sectors.
The easing is expected to cover areas such as AI data centers and renewable energy development, supporting new investment by regional companies.
As part of its national financial strategy, the government has set a target of ¥250 trillion in private-sector investment by fiscal 2040 and considers expanding the supply of funds a key priority.
Meanwhile, views have emerged that the BOJ’s stance on rate hikes conflicts with the government’s fiscal policy, and the divergence between the positions of finance ministry officials and the BOJ has become a focus of debate.