The Japan Financial Services Agency has published draft amendments to the Enforcement Regulations of the Banking Act and related regulations for public comment, alongside proposed updates to relevant supervisory guidelines. The package is framed as implementing the Regional Financial Capacity Enhancement Plan, reflecting deregulation requests from industry associations, and accommodating new lease accounting standards. Key proposals include expanding investment companies’ eligible investment targets and activities, including enabling funding to non-stock companies, allowing continued “crossover” investment in venture business companies after an investee lists, enabling funding even where a business successor company is listed, and adding M&A brokerage to the permitted business scope. The draft also removes income dependence regulations for leasing companies within bank groups, clarifies the regulatory treatment of loan trading by positioning purchases and sales of loan receivables as a “specific transaction” under the Banking Act enforcement rules, and proposes clarified requirements and simplified procedures for regional revitalization business companies; related amendments span rules applicable to shinkin banks, cooperative financial institutions, labor banks and insurers. Comments are due by 17:00 on 12 April 2026, after which the amendments are scheduled to be promulgated and brought into force following completion of the necessary procedures.

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