The second report tries to identify and assess the measures and policy responses taken to date, and points out the issues to which Japan should pay due attention with regard to future developments in the global financial markets.
The second report follows up on the situation of the subprime mortgage problem that has become more serious and widespread since the publication of the first report. It tries to identify and assess the measures and policy response taken to date, and points out the issues to which Japan should pay due attention with regard to future developments in the global financial markets.
The report recommends the establishment of safety net. Countries should constantly review the status of their national safety nets while bearing in mind possible future developments related to the financial markets and systems.
It also notes that the issue of solvency lies behind a liquidity crisis. Enhance risk management to a more advanced level, and precisely grasp the state of health of financial institutions, particularly when the market is under stress.
It reminds among others that robust risk disclosure and transparency are essential and calls for establishing international colleges of supervisors as a framework for cooperation among authorities in supervising internationally active banks.
Credit rating agencies should promptly implement measures based on the revised IOSCO Code of Conduct.
The paper finally calls for a proper response to a major shift in the flow of funds, implementation of the Plan for strengthening the competitiveness of Japan’s Financial and Capital Markets, and a constant review of regulations that could undermine market competitiveness.
Regarding the Japanese version of SWF, it is necessary to conduct a wide range of discussions, including serious consideration of ways to manage national assets from the viewpoint of efficient management.
Financial Markets Strategy Team Second Report
Presentation material summarizing the report
© FSA Japan
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