Japan: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Readiness

May 13, 2024

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Format: Chicago

Japan: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Readiness, (USA: International Monetary Fund, 2024) accessed December 21, 2024

Summary

Japan has made progress in improving its crisis readiness since the 2017 FSAP, and the authorities are committed to make further enhancements that are needed. Notably, the authorities have introduced loss absorbing capacity (LAC) requirements, expanded the recovery and resolution planning (RRP) perimeter to some degree, set up the Recovery and Resolution Planning Office (RRP Office), and revised the RRP guidelines for banks and financial market infrastructures (FMIs). They have also continued with annual reviews and updates of existing RRPs, advanced the work in firm-specific crisis management groups (CMGs), contributed to the workings of international standard-setting bodies, and engaged in bilateral workshops with foreign counterparts. These improvements were built on a relatively comprehensive bank resolution regime, but hands-on experience with managing bank failures and financial crises is fading in Japan, while the financial system is evolving and getting more complex, putting a premium on accelerated and expanded crisis readiness efforts.

Subject: Bank resolution framework, Crisis management, Financial crises, Financial sector policy and analysis, Financial sector stability, Financial stability assessment, International organization, Lender of last resort, Monetary policy

Keywords: Bank resolution framework, Context of the Financial Sector Assessment Program, Crisis management, Crisis READINESS, Crisis simulation exercise, Financial sector stability, Financial stability assessment, Financial support, FSAP finding, Global, Japan securities clearing corporation, Lender of last resort

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/115
Stock No:

1JPNEA2024007
ISBN:

9798400276422
ISSN:

1934-7685

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