The Financial System Council of the Financial Services Agency held a plenary meeting and began discussing a review of money-lending regulations to encourage foreign banks to provide funding for companies' growth investments. A working group will be established to finalize the policy by year-end, and a review of the insurance system is also on the agenda.
At the plenary meeting, the council outlined plans to review money-lending regulations to make it easier for foreign banks to provide funding to Japanese companies and support corporate growth investment. A working group will be established, with a policy framework to be finalized by year-end. The agenda will also include a review of the insurance system, including measures to make it easier to establish insurance subsidiaries within a corporate group.
Under the current money-lending regulations, foreign banks must meet conditions such as establishing a branch in Japan to lend to Japanese companies. The council will consider easing these requirements and allowing foreign banks to participate only in lending conducted jointly with Japanese banks. It also suggested the possibility of using overseas capital for domestic investment in growth sectors such as semiconductors.
The Financial System Council will advance discussions at its plenary meetings, focusing on easing the conditions for foreign bank participation, with the aim of finalizing a policy framework by year-end. A review of the insurance system will also proceed in parallel, with the development of a funding supply framework for growth investment a key focus.