Japan: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Readiness
IMF Staff Country Reports, May 13, 2024
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- Japan: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Readiness
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Bibliographic details
- Published: May 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400276422.002
Executive summary and scope
- Technical note focuses on Financial Safety Net and Crisis Readiness for the Japan Financial Sector Assessment Program.
- Pages: 30
- Volume: 2024
- Issue: 115
- Series: Country Report No. 2024/115
- DOI: https://doi.org/10.5089/9798400276422.002
- ISBN: 9798400276422
- Stock No: 1JPNEA2024007
Key findings on crisis readiness and resolution framework
- Better-structured crisis readiness efforts are needed to ensure that the financial authorities can deliver prompt and effective resolution outcomes.
- The resolution framework should be further strengthened along several other dimensions.
- More banks should be subjected to Recovery and Resolution Planning, supported by comprehensive planning guidance.
- Staffing resources and decision-making structures should be commensurate with further enhancements in the crisis readiness framework and the need to manage bank resolutions in an increasingly complex financial system.
Emergency liquidity assistance (ELA) assessment
- Many aspects of the emergency liquidity assistance (ELA) practices at the Bank of Japan (BOJ) are robust.
- Some components of the ELA framework could be improved.
- Recommendation: The BOJ should consider expanding ELA eligibility to systemically important non-bank financial institutions, prioritizing central counterparties given their pivotal role in ensuring the stability and efficiency of financial markets.
Thematic subjects and keywords
- Subject: Bank resolution framework, Crisis management, Financial crises, Financial sector policy and analysis, Financial sector stability, Financial stability assessment, International organization, Lender of last resort, Monetary policy
- Keywords: Bank resolution framework, context of the Financial Sector Assessment Program, Crisis management, crisis READINESS, crisis simulation exercise, Financial sector stability, Financial stability assessment, financial support, FSAP finding, Global, Japan securities clearing corporation, Lender of last resort
International Monetary Fund. Japan: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Readiness, IMF Staff Country Reports 2024, 115 (2024).
Content in this bundle
- Executive Summary