Japan's Financial Services Agency (FSA) will examine whether domestic financial institutions properly assess credit risks from overseas loans to nonbank lenders and real estate firms, Nikkei Asia reported on Sunday.
The initiative, included in the agency's strategic priorities draft due by June, targets stronger oversight via risk profiling and improved data, the news agency said.
Regulators will also review lending policies, project screening, and risk management for data center financing, the publication said.
Japan's FSA did not immediately respond to' request for comment.
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