The Financial System Council of the Financial Services Agency has decided to consider regulatory changes to funding provision aimed at supporting growth investment and is expected to compile an overall policy framework by year-end. A review of the insurance system is also among the issues under discussion.
The Financial System Council of the Financial Services Agency held a plenary meeting and announced that it would establish a working group to consider revising the funding framework to promote corporate growth investment, with the aim of compiling a policy framework by year-end. The conditions for participation by foreign-affiliated financial institutions and the promotion of insurance subsidiary establishment will also be discussed. The initiative is intended to explore ways to use overseas capital for domestic investment.
Under current lending regulations, foreign banks are required to meet conditions such as establishing a branch in Japan in order to lend to Japanese companies. Easing the regulations and limiting foreign banks to joint lending with Japanese banks could encourage their participation. The initiative is intended to stimulate domestic investment in areas such as semiconductors, where growth is expected, using overseas funds.