{
  "title": "Japan: Financial Sector Stability Assessment Update",
  "publication": "IMF Staff Country Reports, August 1, 2012",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/japan-financial-sector-stability-assessment-update-26137",
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  "summary": "The macroeconomic environment of Japan has constantly been under pressure owing to rising public debt and fiscal deficits. Credit demand has been limited and has shown weak profitability. Growing risks have heightened concerns about a possible feedback to financial stability.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The macroeconomic environment of Japan \"has constantly been under pressure owing to rising public debt and fiscal deficits.\"\n- \"Credit demand has been limited and has shown weak profitability.\"\n- \"Growing risks have heightened concerns about a possible feedback to financial stability.\"\n- This report \"summarizes the findings of the financial sector stability assessment of Japan.\"\n- The Executive Board \"recommends a broad-based financial reform plan that could contribute to private sector growth.\"\n- Suggested measures included:\n  - allocating market-based credit to SMEs,\n  - improving the framework for capital markets, and\n  - consolidating and streamlining of regional banks."
    },
    {
      "heading": "Key findings and analysis",
      "content": "- Macroeconomic pressures:\n  - rising public debt\n  - fiscal deficits\n- Credit and profitability:\n  - limited credit demand\n  - weak profitability in credit provision\n- Financial stability risk:\n  - growing risks that may feedback into financial stability"
    },
    {
      "heading": "Policy recommendations",
      "content": "- Broad-based financial reform plan to support private sector growth.\n- Specific measures suggested:\n  - Allocate market-based credit to SMEs.\n  - Improve the framework for capital markets.\n  - Consolidate and streamline regional banks."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subjects: Banking; Capital adequacy requirements; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial stability assessment; Insurance companies; Securities; Stress testing.\n- Keywords: balance sheet; banking sector; central bank; CR; credit risk; Financial Sector Assessment Program; Financial stability assessment; financial system; Global; Insurance companies; interest rate; ISCR; Japan FSAP; Securities; Stress testing.\n\n---\n\n Content in this bundle\n\n- Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012\n  - Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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    "Published: August 1, 2012",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781475506358.002",
    "The macroeconomic environment of Japan \"has constantly been under pressure owing to rising public debt and fiscal deficits.\"",
    "\"Credit demand has been limited and has shown weak profitability.\"",
    "\"Growing risks have heightened concerns about a possible feedback to financial stability.\"",
    "This report \"summarizes the findings of the financial sector stability assessment of Japan.\"",
    "The Executive Board \"recommends a broad-based financial reform plan that could contribute to private sector growth.\"",
    "Suggested measures included:",
    "Macroeconomic pressures:",
    "Credit and profitability:",
    "Financial stability risk:",
    "Broad-based financial reform plan to support private sector growth.",
    "Specific measures suggested:",
    "Subjects: Banking; Capital adequacy requirements; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial stability assessment; Insurance companies; Securities; Stress testing.",
    "Keywords: balance sheet; banking sector; central bank; CR; credit risk; Financial Sector Assessment Program; Financial stability assessment; financial system; Global; Insurance companies; interest rate; ISCR; Japan FSAP; Securities; Stress testing.",
    "**Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012**"
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