Japan’s FSA Expands Regulatory Reach Including Closer Oversight of Foreign Banks

TOKYO—Japan’s Financial Services Agency is widening its inspection reach to include financial group management and governance, systemic risk administration, oversight of foreign banks’ Japanese branches, and financial service providers’ assistance in government anti-crime and anti-terrorism initiatives.

The new inspection parameters were added in the FSA’s annual collection of inspection samples it conducted on commercial banks, trust banks, life insurers and financial holding companies during the year ending June 2010, according to a report released July 21.

An FSA spokesman explained July 23 that the report is meant as part of the FSA’s “better regulation regime” It is intended to improve ...