Japan's Financial Services Agency will review whether domestic financial institutions are adequately assessing credit risks from lending to overseas non-bank lenders and real estate companies. The initiative will be included in the FSA's draft annual strategic priorities, to be finalised in June next year. The move responds to expanding overseas non-bank lending by major Japanese banks—non-bank financial intermediaries are increasing global activity and drawing more funding from Japanese banks—a

Japan's Financial Services Agency will review whether domestic financial institutions are adequately assessing credit risks from lending to overseas non-bank lenders and real estate companies. The initiative will be included in the FSA's draft annual strategic priorities, to be finalised in June next year. The move responds to expanding overseas non-bank lending by major Japanese banks—non-bank financial intermediaries are increasing global activity and drawing more funding from Japanese banks—and to rising residential prices in major metropolitan areas that have prompted regional lenders to boost property-related loans. The FSA will also focus on investment and lending policies, project due diligence and risk management for data centers and similar facilities.