The Japan Financial Services Agency has issued for public comment draft amendments to the Enforcement Regulations of the Banking Act and related rules to clarify that a business rehabilitation company using the new Early Business Revitalization Procedure may be treated as a subsidiary of a bank and other covered financial institutions. The change follows the Act on Procedures for Adjusting Debts of Business Operators to Financial Institutions, etc. for Smooth Business Revitalization, enacted on June 13, 2025, and is accompanied by other related revisions. The package also covers corresponding amendments to enforcement regulations for shinkin banks, cooperative financial institutions, labor banks, agricultural and fishery cooperative credit institutions, the Agriculture and Forestry Central Bank, and the Insurance Business Act, alongside revisions to comprehensive supervisory guidelines for major banks, small and medium-sized financial institutions, fisheries cooperative system credit business, and insurance companies. After the consultation closes on June 17, 2026, the FSA plans to promulgate and enforce the amendments through the necessary procedures.
Japan Financial Services Agency2026-05-18
Japan Financial Services Agency consults on amendments clarifying that early business revitalization companies can be subsidiaries of banks and other financial institutions
The Japan Financial Services Agency has proposed amendments to Enforcement Regulations of the Banking Act and related rules to clarify that a business rehabilitation company using the new Early Business Revitalization Procedure may be treated as a subsidiary of banks and other covered financial institutions. The package includes corresponding changes for shinkin banks, cooperative and labor banks, agricultural and fishery cooperative credit institutions, the Agriculture and Forestry Central Bank, and insurers.