The Financial Services Agency (FSA) has compiled and analyzed matters identified through recent monitoring activities, taking into account the increasing business activities of foreign bank branches and foreign securities companies, with the aim of supporting appropriate and sound business development.
Key Points
1. Background and Purpose
- Business activities of foreign bank branches and foreign securities companies have become increasingly active in Japan
- Monitoring conducted from the perspective of supporting appropriate and sound business development
- Aimed at deepening understanding of the business models of each Japanese branch
2. Focus Areas of Monitoring
- Understanding and analysis of business models at each branch
- Confirmation of the establishment and operational status of governance systems appropriate to business models
- Confirmation of the establishment and operational status of legal compliance systems
- Confirmation of the establishment and operational status of risk management systems
3. Target Financial Institutions
- Primary targets: Japan branches of foreign financial groups headquartered in the United States and Europe with large-scale operations
- Other targets: Foreign bank branches headquartered in Asia and other regions
- Comprehensive understanding of situations through analysis of various metrics
4. Content of Published Materials
- Organization of matters identified through recent monitoring
- Analysis results of various metrics
- Current status and challenges of foreign bank branches and foreign securities companies
- Future direction of monitoring
5. Published Materials
- Main text: "Monitoring of Foreign Bank Branches and Foreign Securities Companies" (PDF)
- "Overview of Monitoring of Foreign Bank Branches and Foreign Securities Companies" (PDF)
- Published on June 30, 2025
6. FSA's Stance
- Support for sound business development of foreign financial institutions
- Recognition of the important role of foreign financial institutions in the Japanese market
- Ensuring market soundness through appropriate supervision and monitoring
7. Contact Information
- Major Securities Firms Monitoring Office, Supervisory Bureau, Financial Services Agency
- Phone: 03-3506-6000 (main) Extensions 2280, 2934
This report is intended to clarify the FSA's supervisory policies and issue awareness, enabling foreign financial institutions to appropriately develop their businesses in the Japanese market, and to promote highly transparent financial administration.