Financial Services Agency, Japan (JFSA, 金融庁)

The FSA published the English version of "FSA Analytical Notes (2025.1) vol.2”: “Analysis of Borrower Classifications Assigned to Shared Borrowers” and “Attributes of Housing Loans by Regional Banks.” Congratulations to Macro-financial Stability and Data Strategy Office of the FSA for its great work. <https://lnkd.in/gmrchyTu>   The former report analyzes the borrower classifications (internal ratings) of shared borrowers, to which two or more banks extend loans, using granular loan-by-loan level data. Specifically, we quantify the difference of borrower classifications for common lending institutions. The results of the analysis suggest that loans extended to the shared borrowers outside the home region of banks (prefecture-wise cross-border loans) and loans which include major bank(s) in their creditors, are more likely to be rated as "normal" even after controlling the effects of the financial conditions of the borrowers. The latter report compiles a detail picture of the housing loans extended by regional banks, using granular loan data. It is confirmed that there are regional differences in interest rate types and levels. In addition, it is observed that transaction volumes and lending periods per loan are growing, which may lead to higher risks. (Note) “FSA Analytical Notes” series summarize major data analyses conducted by the FSA as part of its efforts to enhance data utilization. １月21日に公表した「FSA Analytical Notes (2025.1) vol.2」の英語版を公表しました。<https://lnkd.in/gmrchyTu> <https://lnkd.in/dUqV8P4P> 本レポートは、高粒度データを用いて行った「共通貸出先に対する債務者区分の付与状況に関する分析」及び「地域銀行の住宅ローンに関する実態把握」の２つの分析を紹介しています。 前者においては、各行における債務者区分の付与傾向を把握するため、共通貸出先に対する債務者区分の差異を定量化しました。その結果、圏外向けに対する貸出の場合や、貸出先の債権者に大手行が含まれる際は、それぞれ債務者区分が正常先となる確率が高くなることが確認されました。 後者においては、住宅ローンについて、全国６ブロックごとに、足元の状況（ローン残高、金利種別、金利水準等）を確認しました。また、新規実行の観点からは、債権1件当たりの実行金額や貸出期間が増加傾向であることが確認できました。

On January 30, 2025, the third Meeting of the UK-Japan Financial Regulatory Forum was held in London by the Financial Services Agency (FSA) and the HM Treasury (HMT), the Bank of England (BoE), and the Financial Conduct Authority (FCA). The Forum is based on Annex on the Regulatory Cooperation on Financial Regulation of the Agreement between Japan and UK for an Economic Partnership, which aims to exchange views on financial regulations. At the Forum meeting, participants discussed wide range of topics such as asset management reforms in each country including Japan’s “Policy Plan for Promoting Japan as a Leading Asset Management Center,” sustainable finance, digital finance, and banking regulation updates. https://lnkd.in/gPBRkivV

On January 28, 2025, the Japan-Switzerland Financial Dialogue was held in Bern by the Financial Services Agency (FSA), Ministry of Finance (MOF), State Secretariat for International Finance, Federal Department of Finance (SIF), and Swiss Financial Markets Supervisory Authority (FINMA). In the dialogue, participants exchanged views on a wide range of topics such as macroeconomic outlook, regulatory and supervisory policy developments including Japan’s “Policy Plan for Promoting Japan as a Leading Asset Management Center,” digital finance and sustainable finance. https://lnkd.in/dmJVWQGC

[Japan Weeks 2025🚀] The Government of Japan is advancing its initiatives to establish Japan as an international financial center and promote Japan as a leading asset management center. As part of these efforts, the Government of Japan held the Japan Weeks in the fall of 2023 and 2024. During Japan Weeks 2023 and 2024, various events were held with the participation of overseas investors and asset management companies. In order to strengthen communication with overseas investors, a third round of Japan Weeks will be held in the fall of 2025. Its core week is from October 20 to October 24, and a variety of events will be held including the weeks before and after that. During this core week, an annual meeting of the Asset Management Forum will be held to publish the discussions that have taken place among asset management companies since its launch. For more details, the Japan Weeks 2025 official website will be launched. For collaboration inquiries regarding Japan Weeks 2025, please feel free to contact us: japan_as_ifc@fsa.go.jp https://lnkd.in/gvtdbNaG

The FSA published "FSA Analytical Notes (2025.1) vol.2". With the use of granular order/transaction-level data, it presents two analyses on: 1) borrower classifications assigned to shared borrowers, and 2) attributes of housing loans by regional banks. Congratulations to Macro-financial Stability and Data Strategy Office of the FSA for its great work. An English version will be published shortly. (Note) “FSA Analytical Notes” series summarize major data analyses conducted by the FSA as part of its efforts to enhance data utilization.   データ活用の高度化に向けた取組の一環として金融庁が実施した主なデータ分析をまとめた「FSA Analytical Notes（2025.1）vol.2」を公表しました。 https://lnkd.in/dUqV8P4P     本レポートは、高粒度データを用いて行った「共通貸出先に対する債務者区分の付与状況に関する分析」及び「地域銀行の住宅ローンに関する実態把握」の２つの分析を紹介しています。 前者においては、各行における債務者区分の付与傾向を把握するため、共通貸出先に対する債務者区分の差異を定量化しました。その結果、圏外向けに対する貸出の場合や、貸出先の債権者に大手行が含まれる際は、それぞれ債務者区分が正常先となる確率が高くなることが確認されました。 後者においては、住宅ローンについて、全国６ブロックごとに、足元の状況（ローン残高、金利種別、金利水準等）を確認しました。また、新規実行の観点からは、債権1件当たりの実行金額や貸出期間が増加傾向であることが確認できました。 英語版も作成中ですので、公表次第、再度アナウンスします。

The FSA published the English version of "FSA Analytical Notes (2025.1) vol.1: Analysis of Japanese Stock Market Turbulence in Early August 2024". Congratulations to Macro-financial Stability and Data Strategy Office of the FSA for its great work. <https://lnkd.in/gwHuK4df>   This report attempts a detailed analysis of the sharp swings that occurred in Japanese stock market on August 5, 2024, with the use of granular order/transaction level data of the Nikkei 225 Futures. By taking advantage of such granular data, it introduces a novel approach in which it has developed indicators to evaluate supply-demand and liquidity, including dominance by buyers/sellers, concentration by specific entities in transactions, price impact per contract amount and liquidity around the best quote. As a result of looking at the year-to-date (early August) and August 5 intraday movements of these developed indicators, it is suggested that market liquidity was declining at the time and prices were prone to fluctuations. For instance, various indicators suggested that from mid-July to early August, market liquidity was sharply declining and prices were prone to fluctuations. In addition, regarding the intraday movement on the day of August 5, several indicators confirmed that market liquidity had rapidly subsided toward the afternoon session. (Note) “FSA Analytical Notes” series summarize major data analyses conducted by the FSA as part of its efforts to enhance data utilization. １月８日に公表した「FSA Analytical Notes (2025.1) vol.1」の英語版を公表しました。<https://lnkd.in/gwHuK4df> <https://lnkd.in/gHgdh_2H> 本レポートは、高粒度データを用いて行った「2024年8月上旬の日本株市場の急激な相場変動に関する分析」を紹介しています。粒度の高い個々の注文・取引明細を用いて、テイク注文による約定金額の割合や売買最良気配価格まわりに指値注文された注文枚数等に着目した複数の指標を算出し、その推移を分析した結果、流動性の枯渇が急激な相場変動の一因となった可能性が示唆されました。

The FSA published "FSA Analytical Notes (2025.1) vol.1". With the use of granular order/transaction-level data, it presents a novel approach in analyzing Japanese Stock Market Fluctuations in Early August 2024. Congratulations to Macro-financial Stability and Data Strategy Office of the FSA for its great work. An English version will be published shortly. (Note) “FSA Analytical Notes” series summarize major data analyses conducted by the FSA as part of its efforts to enhance data utilization.   データ活用の高度化に向けた取組の一環として金融庁が実施した主なデータ分析をまとめた「FSA Analytical Notes（2025.1）vol.1」を公表しました。 https://lnkd.in/gHgdh_2H   本レポートは、高粒度データを用いて行った「2024年8月上旬の日本株市場の急激な相場変動に関する分析」を紹介しています。 本分析においては、粒度の高い個々の注文・取引明細を用いて、テイク注文による約定金額の割合や売買最良気配価格まわりに指値注文された注文枚数等に着目した複数の指標を算出し、その推移を分析した結果、流動性の枯渇が急激な相場変動の一因となった可能性が示唆されました。 英語版も作成中ですので、公表次第、再度アナウンスします。

🌐 We’re thrilled to announce that Japan Fintech Week will be held again in 2025, with a core week from March 3 to March 7! 🌐   We’ve launched the official Japan Fintech Week LinkedIn page<https://lnkd.in/giNrq278>, your go-to source for exclusive updates, speaker announcements, and networking opportunities. Follow us today and tag us on your posts! https://lnkd.in/gzMF7FRy

The FSA published the English version of "FSA Analytical Notes (2024.7) vol.1". Congratulations to Macro-financial Stability and Data Strategy Office of the FSA for its great work. https://lnkd.in/gZRpt7cM   This report compiles three analyses: “Analysis of Trends of Real Estate Loans by Regional Banks and Study on Credit Ratings using Machine Learning,” “Analysis of Corporate Transaction Network” and “Analysis of Corporate Bankruptcies arising from Human Resource Shortages amid the Changing Working Environment.”   The first paper used granular loan-by-loan level data, which provided better insight into the precise picture of real estate loans from various angles, such as by location/types of borrowers and usage for collateral. In addition, the application of machine learning methods revealed a granular relationship, through SHAP (SHapley Additive exPlanations) values, between future credit ratings, and current financial conditions and real estate market conditions. The second paper developed indicators (Contagion index and Vulnerability index) to identify significant enterprises that may spread or accumulate the impact of the default of an enterprise on the network, focusing on the corporate transaction network. The computed indicators suggest that some enterprises are more important than others. The third paper revealed that firms that went bankrupt due to human resource shortages had different characteristics from other firms in terms of labor cost burden and operational efficiency, which could be useful in considering macro environment change impacts in a forward-looking manner. (Note) “FSA Analytical Notes” series summarize major data analyses conducted by the FSA as part of its efforts to enhance data utilization. 2024年７月に公表した「FSA Analytical Notes (2024.7) vol.1」の英語版を公表しました。 https://lnkd.in/gZRpt7cM https://lnkd.in/gnzZfBrY 本レポートは、高粒度データを用いて行った「地方銀行における不動産業向け貸出及びその債務者区分の動向に関する分析」、「企業間取引ネットワーク分析」及び「労働状況の変化を踏まえた人材不足倒産に関する分析」を紹介しています。 １つ目の分析では、貸出明細データを用いて、多面的な切り口で地方銀行における不動産業向け貸出及びその債務者区分の動向を分析しました。加えて、機械学習等も活用し、説明可能性を高めるための手法の１つであるSHAP（SHapley Additive exPlanations）値等を通じて、貸出先企業の財務指標や不動産市況と債務者区分の関係性を考察しました。 ２つ目の分析では、企業間取引ネットワークにおける企業破綻時の影響の波及度を測るうえで重要な企業を特定する指標（波及力指数、脆弱性指数）について考察し、分析の結果、一部の企業が他の大多数と比べてその重要度が高いことが示唆されました。 ３つ目の分析では、外部企業情報の財務データ及び倒産データを用いて、人材不足を要因として倒産した企業は、人件費負担や業務効率化等の面で、その他の企業とは異なる特徴があることが明らかになりました。

The FSA published the English version of "FSA Analytical Notes (2024.7) vol.2: Impact of HFT". Congratulations to Macro-financial Stability and Data Strategy Office of the FSA for its great work. https://lnkd.in/gZRpt7cM   This report attempts a detailed analysis of the impact of high-speed trading (HFT) on market liquidity and market fluctuations using order details data for stock index futures contracts during December 2023. The analysis of the impact of HFT on market liquidity suggests that there exist variations in the ordering behavior of HFT depending on the time and changes in best quotes, while a certain level of liquidity supply by HFT was observed during the period. The analysis of the impact of HFT on the magnitude of market fluctuations indicates that HFT may contribute to suppressing market volatility in some cases (e.g. market-making strategy) but it may not be the case depending on trading strategies. (Note) “FSA Analytical Notes” series summarize major data analyses conducted by the FSA as part of its efforts to enhance data utilization. 2024年７月に公表した「FSA Analytical Notes (2024.7) vol.2」の英語版を公表しました。 https://lnkd.in/gZRpt7cM https://lnkd.in/gnzZfBrY 本レポートは、高粒度データを用いて行った「高速取引行為が市場流動性や市場変動の大きさに与える影響に関する分析」を紹介しています。2023年12月の株価指数先物取引の注文明細データを用いて高速取引行為（HFT）の影響を分析したものであり、①HFTは市場に一定の流動性を供給しているが時期や最良価格の変化によってその程度は異なること、②HFTの取引戦略の違いにより、市場変動を抑制するまたは増幅するいずれの可能性もあること、が示唆されました。