QuestionWhat is off-site monitoring?
Off-site monitoring is one of the Bank's operations -- along with on-site examinations -- to grasp the state of business operations and assets of the financial institutions that hold current accounts at the Bank. Specifically, the Bank strives to broadly and swiftly gauge financial institutions' business conditions -- in terms of funding conditions, business operations, and profitability -- by conducting meetings and telephone interviews with their executives and staff members and by analyzing various documents they submit both on a daily basis. Off-site monitoring differs from on-site examinations in that visits to financial institutions do not take place.
Based on information obtained through off-site monitoring, the Bank (1) provides appropriate advice to financial institutions considering risks they hold, and (2) analyzes and assesses, from a macroprudential perspective, how their business operations, such as lending activities, securities investment, funding, and the stance in off-balance transactions, as a whole influence financial conditions and the financial system.