Japan's Financial Services Agency will monitor real estate credit risk and liquidity and interest rate risk amid changes in the interest rate environment, according to a Tuesday statement on its strategic priorities for fiscal 2026.
The focus on these risks is part of a key point dedicated to improved monitoring of individual financial institutions and the whole financial system, the regulator said.
Despite an overall stable financial system, increasing interest rates and corporate financing demand have altered financial institutions' fundraising and investment activities, the FSA said.
Other key points include stable implementation of measures under the regulator's financial strategy for growth investment, efforts to ensure governance in financial institutions and response to financial crime and natural disasters.
The regulator also highlighted ensuring capital market confidence and continued evolution in financial administration through AI-driven business reform.