The Bank of Japan published a Review Series article outlining how it uses supervisory granular data, particularly loan-by-loan data collected from banks, in its recent financial system analysis. The paper argues that transaction-level data can reveal facts that are difficult to detect from conventional aggregated data, supporting earlier identification of vulnerabilities and assessment of potential risks. The authors highlight the need to continue improving analytical methods for using granular datasets to strengthen financial stability monitoring and contribute to better risk management practices at banks. The report is published as an English translation of the Japanese original and reflects the views of the authors rather than the Bank of Japan.
Bank of Japan 2026-03-06
Bank of Japan review explains how loan-by-loan supervisory data is used to identify financial system vulnerabilities
The Bank of Japan released a Review Series article detailing its use of supervisory granular data, such as loan-by-loan data, in financial system analysis. The paper emphasizes the advantages of transaction-level data for early vulnerability detection and risk assessment. It also calls for enhanced analytical methods to improve financial stability monitoring and risk management at banks.