## Japan: Financial Sector Stability Assessment Update

_IMF Staff Country Reports, August 1, 2012_

## Source details

**Canonical URL:** [Japan: Financial Sector Stability Assessment Update](https://www.imf.org/en/publications/cr/issues/2016/12/31/japan-financial-sector-stability-assessment-update-26137)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/japan-financial-sector-stability-assessment-update-26137/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/japan-financial-sector-stability-assessment-update-26137/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/japan-financial-sector-stability-assessment-update-26137/bundle-manifest.json)

## Bibliographic details
- Published: August 1, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475506358.002

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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."
- 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:
  - allocating market-based credit to SMEs,
  - improving the framework for capital markets, and
  - consolidating and streamlining of regional banks.

### Key findings and analysis
- Macroeconomic pressures:
  - rising public debt
  - fiscal deficits
- Credit and profitability:
  - limited credit demand
  - weak profitability in credit provision
- Financial stability risk:
  - growing risks that may feedback into financial stability

### Policy recommendations
- Broad-based financial reform plan to support private sector growth.
- Specific measures suggested:
  - Allocate market-based credit to SMEs.
  - Improve the framework for capital markets.
  - Consolidate and streamline regional banks.

### Subject coverage and keywords
- 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.

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## Content in this bundle

- **Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012**
  - [Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12210.pdf.md){rel="alternate" type="text/markdown"}
  - [Japan: Financial Sector Stability Assessment Update; IMF Country Report No. 12/210; July 10, 2012 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12210.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/japan-financial-sector-stability-assessment-update-26137_