BUSINESS / Markets

Japan's financial regulation shake-up seen as a game changer for banks

Financial services minister Taro Aso says shifting from rules that are focused on entities — banks, insurers and other institutions — to those based on functions would make the industry more competitive and adaptable. | BLOOMBERG

By Yuki Hagiwara and Gareth Allan
Bloomberg

Feb 27, 2018

The Financial Services Agency is laying the groundwork for a regulatory overhaul that could lead to a shake-up in Japan's ¥1 quadrillion banking industry.

The agency is examining how to change the legal framework so that all providers of financial services are subject to the same rules — a move that would allow emerging companies such as technology startups to compete directly with traditional financial institutions.

For banks, the revamp could end their monopoly on deposit-taking and lending but also free them up to enter new businesses.

Japan's financial regulation shake-up seen as a game changer for banks

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