QuestionWhich institutions are subject to on-site examinations? Are financial holding companies also included?
The Bank currently concludes on-site examination contracts with financial institutions that hold current accounts at the Bank, which are defined as financial institutions and other financial business entities as stipulated in Article 37, paragraph 1 of the Bank of Japan Act and Article 10 of the Bank of Japan Act Enforcement Order.
Specifically, financial institutions include banks, branches of foreign banks, shinkin banks (including Shinkin Central Bank), The Shoko Chukin Bank, Ltd., The Shinkumi Federation Bank, The Rokinren Bank, and The Norinchukin Bank. Other financial business entities include securities companies, securities finance companies, and tanshi companies (money market brokers).
Procedures for Financial Holding Companies
From the perspective of complementing on-site examinations and gauging business conditions of financial institutions more accurately, when the financial institutions subject to on-site examinations are subsidiaries of financial holding companies, the Bank concludes on-site inquiry contracts with the companies, requests reports and documents to be submitted, and conducts on-site inquiries to the extent necessary to complement examinations.
Moreover, when the Bank judges that it is necessary to conduct on-site inquiries, including on subsidiaries and subcontractors of the financial institutions, the Bank obtains consent from them individually beforehand.