According to four sources with direct knowledge of the matter at hand, Japan’s banking regulator is conducting a survey on regional lenders to gauge how new curbs imposed earlier this year in January to help mitigate the effects of the coronavirus-induced COVID-19 pandemic are affecting regional economies.
The survey by the Financial Services Agency (FSA) comes in the wake of the government’s roll-out of state-of-emergency measures; it is aimed at “forestalling a spike in bankruptcies that could destabilise regional economies,” said sources.
Sources preferred the cover of anonymity since they were not authorized to speak publicly. “Since March of last year, we have made the efforts of financial institutions to support businesses a top priority in our inspections and supervisions. From time to time, depending on the circumstances, financial institutions are asked on an ongoing basis about the status of their support and the status of their customers,” said the FSA.