The Financial Services Agency has presented a draft policy looking ahead to around summer 2027, outlining plans to strengthen oversight of major financial institutions' overseas operations. In light of their expanding international operations and the factors behind misconduct, the FSA will strengthen its supervisory framework and advance risk analysis.
A draft of the Financial Administration Policy, which sets out the Financial Services Agency's priorities, has emerged. Its key measures include strengthening oversight of major financial institutions' overseas operations throughout FY2026, which runs through around summer 2027, and promoting sound business practices in insurance sales. The policy also indicates that the FSA will continue to monitor regional banks and credit unions as pillars of local economies.
Reviews of overseas operations will analyze the impact of unforeseen events, such as turmoil in global financial markets and an economic downturn, and assess whether corporate governance and risk management measures are in place in line with each institution's business strategy. The FSA plans to cooperate with the Bank of Japan and overseas regulators.
The policy is based on the recognition that large losses overseas could shake Japan's financial system and potentially disrupt domestic services.
Major financial groups are actively pursuing M&A involving overseas companies. Mitsubishi UFJ Financial Group invested approximately ¥680 billion in a major Indian non-bank.