Japan Authorities Are Said to Team Up on Bank Stress Tests

Japan’s central bank and financial regulator are teaming up to test major banks’ resilience to mounting risks at home and abroad, people with knowledge of the matter said.

The first-ever joint stress tests by the Bank of Japan and Financial Services Agency will require five lenders to measure their ability to withstand shocks such as a sharp economic slowdown, falling stock prices and changes in interest rates, among other things, the people said, asking not to be identified.

The banks are Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc., Sumitomo Mitsui Trust Holdings ...