QuestionHow is the Bank supervised by the government?
The Bank of Japan Act (hereafter the Act) stipulates when the Bank needs to obtain authorization, gain approval, or submit a report to the Minister of Finance. Due to the revision of the Act in 1998, the government's authority to supervise the Bank has changed considerably. That is, the authority has been limited in consideration of the Bank's independence and transparency. Specifically, the Act stipulates auditing by the Bank's Auditors on necessary matters (Article 57), limited authorization for the budget for expenses (Article 51), and the publication of the reason in the case of denial of authorization by the Minister of Finance (Article 7 and other articles).