Deposit-Taking Financial Institutions Monitoring and Analysis Report

The Financial Services Agency compiled and published, to the extent possible, part of its monitoring of deposit-taking financial institutions conducted in FY2025.

Against a backdrop of rising geopolitical risks and changes in domestic and international economic and financial conditions, the business environment surrounding financial institutions is changing significantly.

The Financial Services Agency is pursuing effective monitoring to help ensure financial system stability after deepening its understanding of each financial institution’s business model and risk profile. The report is also intended to support future work through reflection on its own activities.

The report covers deposits in a world with interest rates, lending related to real estate whose prices have risen in recent years, and securities investment during periods of rising interest rates.

It also describes overseas fund-related businesses on which major banks and others are focusing, the Financial Services Agency’s initiatives to enhance governance, the implementation status of Basel III, which began to apply from the fiscal year ending March 2025, and the Financial Services Agency’s own use of data.

This report does not cover all monitoring activities, nor does it indicate the relative importance of the topics included and omitted. It is not intended to be used as a checklist or in a mechanical or formal manner in future monitoring.