Financial Services Agency
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6

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FSA

2022
June

No.226

Monthlymagazine

Provisional
Translation

Contents
Conferences (P1 -)P1 Minister of State for Financial Services SUZUKI's Roundtable Discussion with
Citizens on Regional Financial Institutions' Escort-type Support to Foster Social
Mind
P2 FSA-sponsored International Symposium on Transition Finance
P5 Meeting of Directors-General of Local Finance Bureaus– Remarks by State Minister KIKAWADA and Parliamentary Vice-Minister
MUNEKIYO –Policy Commentary Corner (P9 -)P6 Kasumigaseki Dialogue Held Online– Introduction of Measures by Ministries and Agencies –SUMIMOTO Fumiya Unit Chief, Regional Finance Support Office,Planning and Management Division, Supervision Bureau
P7 Publicity of Public Insurance beyond Barriers of Ministries and Agencies– Understanding of Public Insurance Leads to Selection of Due Private Insurance
Policies –NISHIOKI Yu, Deputy Director
YAMAZAKI Ichiro, Deputy Director,
Insurance Business Division, Supervision Bureau
Article Contributed from Overseas (P9 -)P9Headquarters for International Negotiations on Financial Policies(Basel, Switzerland)
ASAKURA Rie, Deputy Director, Europe Representative

JFSA‘s Major Activities in May (P11 -)Access the online version here
https://www.fsa.go.jp/en/newsletter/index.html

Minister of State for Financial Services SUZUKI's
Roundtable Discussion with Citizens on Regional Financial
Institutions' Escort-type Support to Foster Social Mind
Minister SUZUKI participated in a roundtablediscussion* hosted by the Junior ChamberInternational Japan on May 24, 2022.
The theme of the roundtable discussion was"Regional financial institutions' escort-type support
to foster social mind“, and business operators fromacross Japan attended it.

Photo: During the roundtablediscussion

The Financial Services Agency (FSA) feels thatthe discussion was very fruitful as participantsbrought up specific points and suggestions fromtheir positions.

Photo: Minister SUZUKI during theroundtable discussion.

Taking them into account, the FSA will further
promote regional financial institutions' efforts to
help local business operators address social
problems.

Participants mentioned a variety of experiences
and suggestions, including the following:- Business operators share the philosophy ofmanagement with employees and otherstakeholders and carry out various programs togrow with the community.
- How regional financial institutions should
evaluate business operators' programs of suchkind that are not necessarily reflected infinancial affairs, or- How regional financial institutions should
support the programs.
*

1

Photo: ParticipantsNote: Participants form a shape of the Japanese
kanji character for "eight" with two hands,
which means "good in all directions."

In his policy speech on October 8, 2021, Prime Minister KISHIDA Fumio instructed his Cabinet members to holdroundtable discussions with citizens from various cohorts and perform comprehensive checks on whether or not policies are
well-tailored to the people's needs. In response, the FSA hosted Minister SUZUKI's roundtable discussion with citizens on"people's asset formulation and financial literacy" on November 26.
During the roundtable discussion held on November 26, 2021:
https://www.fsa.go.jp/kouhou/kurumaza/tokyo20211126.html (Available in Japanese)

FSA-sponsored International Symposiumon Transition Finance
1. Background
Climate change is an urgent issue that must be
resolved globally. In order to achieve carbon
neutrality, all industries need to make a transition
that contributes to achieving the goals of theParis Agreement. Also, encouraging theprovision of capital through "transition
finance“ by properly evaluating these efforts isimportant.
On May 26, 2022, the FSA held aninternational symposium with the focus on“transition” at the Toranomon Hills Forum andonline to discuss transition pathways to net zeroand the role of transition finance.*1
The summary of the symposium follows.
2. Summary of the Symposium
The symposium featured lively discussions
among approximately 30 representatives fromthe financial and industrial sectors, third-party
evaluation organizations as well as government
officials. FSA invited speakers from not only
Japan but also Singapore, the U.S., Canada andEuropean countries based on the idea ofgathering major stakeholders both from Japanand abroad and settling the pending question oftransition. Approximately 850 people attended
the event, including both on-site and online
participants.
Following is the flow of the event.
◆ Welcome Remarks
Shunichi Suzuki, Minister of State for Financial
Services, introduced the Japanese government's
pioneering efforts in emphasizing the importanceof "transition finance" andprograms adopted by the Japanese government
and the FSA. In addition to the government's
efforts, the private sector has also been active intransition finance, he said, delivering a message
that it is important for representatives from thepublic and private sectors, who gathered at the
symposium, to cooperate with each other acrossborders to solve the problem of climate change.

Photo: Minister Suzuki delivers welcome remarks.

◆ Keynote Discussion
Mr. Mark Carney, UN Special Envoy for
Climate Action and Finance / Chair for the
Glasgow Finance Alliance for Net Zero
(GFANZ),*2 and Mr. Hiromichi Mizuno, Special
Envoy of UN Secretary-General on Innovative
Finance and Sustainable Investments, introduced
the work of GFANZ, especially studies onpathways separately designated for sectors facing
the difficulty of transition to decarbonization andwork pertaining to financial institutions'transition plans. They also spoke of their
expectations for Japan's role in supporting
emerging economies and innovation toward
decarbonization.

*1: For details of the symposium, visit https://supportoffice.jp/fsasustainable2022/index_en.php*2: The Glasgow Finance Alliance for Net Zero (GFANZ), chaired by Mark Carney, UN Special Envoy for Climate Action

and Finance, was founded in April 2021 as a strategic forum to bring together sector-by-sector net zero initiatives in thefinancial industry. More than 450 financial institutions, with assets totaling $130 trillion (16.9 quadrillion yen), haveparticipated in sector-by-sector programs under the GFANZ.

2◆ Panel Discussion 1 "Challenges andInitiatives in Going Carbon Neutral"
To kick off the discussion, Dr. Darian McBain,
Chief Sustainability Officer of the Monetary
Authority of Singapore (MAS), gave a keynote
address on the challenges and opportunities for
decarbonization in Asia.
The speech was followed by a discussion inwhich participants discussed efforts to draw up
sectoral pathways globally and in Japan, theenergy situation as a background for such efforts,
and the importance of transition finance.

Photo: Dr. Darian McBain, Chief Sustainability Officer ofthe Monetary Authority of Singapore (MAS), delivers a
keynote address.

◆ Panel Discussion 2 "Transition Pathways
Needed to Achieve Net Zero"
The subsequent panel discussion was divided
into three sectoral breakout groups for morepractical discussions: "Steel," "Aviation," and"Power," to discuss how credible pathways」
should be to achieve the goals of the Paris
Agreement. In the sectoral groups, invited
panelists – those who have developed theirpathways globally and in Japan, leading
companies, investors and third-party evaluation
organizations
introduced
technologicalchallenges and industrial efforts in Japan andabroad to achieve net zero and the criteria ofinvestors and third-party evaluation organizations

3

to assess pathways and corporate transition
strategies. In addition, they reconfirmed theimportance of the industrial and financial sectors'
exchange of opinions and cooperation throughdialogues.

◆ Panel Discussion 3 "Finance to Achieve
Orderly Transitions"
The final panel discussed topics such as theperspective of financial institutions to evaluate
corporate transitions in a forward looking manner,the evaluation of Japanese companies at thispoint in time, how to promote technologicalinnovation and client engagement, and solutions
to regional differences and possible gaps between
the industrial and financial sectors.
◆ Closing Remarks
Tomoko Amaya, Vice Minister for International
Affairs, the FSA, explained Japan's entity-basedtransition finance approach to companies in highemitting sectors. She expressed her hope that the
symposium will serve as a cornerstone of thelong journey toward the achievement of the Paris
Agreement.
3. Conclusion
The event was one of the biggest symposiums
on sustainable finance hosted by the FSA. We
hope that the chain of collaboration beyond
barriers between the industrial and financial
sectors among others, which is indispensable forceaseless efforts to achieve a sustainable society,will further expand despite the continuation of
the COVID-19 crisis and unstable internationalsituation.
Last but not least, we would like to express ourthanks to participants in the symposium andpeople in Japan and abroad who cooperated inpublicizing the event.

(Reference) Timetable / Speakers
JST

Program

13:30

Welcome Remarks(Pre-recorded)

13:35

In Conversation With
(Pre-recorded)

Speakers
Shunichi Suzuki, Minister of State for Financial Services
Mark Carney, UN Special Envoy for Climate Action and Finance / Chair for the Glasgow Finance Alliance for Net Zero
Hiromichi Mizuno, Special Envoy of UN Secretary-General on Innovative Finance and Sustainable Investments

Panel Discussion 1 “Challenges and Initiatives in going Carbon Neutral”
14:10
Keynote Speech

Darian McBain, Chief Sustainability Officer, Monetary Authority of Singapore
Sonja Gibbs, Managing Director, Head of Sustainable Finance, Global Policy Initiatives, the Institute of International
Finance (IIF)
Fumihiro Kajikawa, Director, Environmental Economy Office, Industrial Science and Technology Policy andEnvironment Bureau, the Ministry of Economy, Trade and Industry

14:20

Discussion

Adam C.T. Matthews, Chief Responsible Investment Officer, Church of England Pensions Board /Chair, Transition
Pathway Initiative (TPI)
Yukari Yamashita, Managing Director, Charge of Energy Data and Modelling Center, the Institute of Energy
Economics, Japan

Moderator: Hideki Takada, Director, Strategy Development Division, the Financial Services Agency
Panel Discussion 2“Transition Pathways Needed to Achieve Net Zero”
Keigo Akimoto, Group Leader/Chief Researcher, Research Institute of Innovative Technology for the Earth
Hitoshi Dohnomae, General Manager, Environment Division, Nippon Steel Corporation / Chair, International
Environmental Strategic Committee, the Japan Iron and Steel Federation

Sub stream 1“Steel Sector”

Kevin Ranney, Senior Vice President, Corporate Solutions, Sustainalytics
Tony Rooke, Executive Director, Climate Transition Planning and Sectoral Pathways, GFANZ (Glasgow Financial
Alliance for Net Zero)

Moderator: Takashi Kondo, Director, Green Impact Finance Office, Environment and Economy Division, the Ministry of
the Environment
Pierre Briens, Head of Aviation Asia Pacific, BNP Paribas
Yuji Fujiwara, Country Manager for Japan, the International Air Transport Association (IATA)
Sami Jauhiainen, Vice President of Asia-Pacific, Renewable Aviation, Neste
15:30

Sub stream 2“Aviation Sector”

Noriko Ogawa, Vice President, ESG Promotion Department, Japan Airlines
Hajime Yoshimura, Director, Airworthiness Standards and International Affairs Office, Civil Aviation Bureau, Ministryof Land, Infrastructure, Transportation and Tourism, Japan

Moderator: Saori Takahashi, Deputy Director, International Affairs Office, the Financial Services Agency
Giulia Genuardi, Head of Sustainability Planning & Performance Management and Human Rights, Enel Spa
Kazuo Sakairi, Corporate Vice President, Managing Executive Officer, Director, Chief Financial Officer, Finance andAccounting, JERA Co., Inc.
Sub stream 3“Power Sector”

Jakob Thomae, Co-founder and Executive Director, 2° Investing Initiative
Motoshi Tomita, Research Scientist, Sustainable System Research Laboratory and Socio-economic Research Center,
Central Research Institute of Electric Power Industry
Mats Rinaldo, Deputy Director of Energy Transition Programme, DNV

Moderator: Miho Kurosaki, Independent Climate Change/ESG Specialist
Panel Discussion 3“Finance to Achieve Orderly Transitions”
Simon Connell, Global Head of Sustainability Strategy, Standard Chartered Bank
Tomohiro Ishikawa, Managing Director, Head of Government & Regulatory Affairs Office, Mitsubishi UFJ Financial
Group (MUFG)
Keith Tuffley, Vice Chairman, Global Co-Head, Sustainability & Corporate Transitions, Citi

16:45
Discussion

Emily Woodland, APAC Co-Head of Sustainable Investing, BlackRock
Miyuki Zeniya, Deputy Head of Global Sustainability, Fellow, Corporate Planning Unit, Dai-ichi Life Holdings, Inc. /Head of Sustainable Finance, Fellow, Investment Planning Dept. The Dai-ichi Life Insurance Company, Limited

Moderator: Satoshi Ikeda, Chief Sustainable Finance Officer, the Financial Services Agency
17:50

Closing Remarks

Tomoko Amaya, Vice Minister for International Affairs, the Financial Services Agency

4

Meeting of Directors-General of Local Finance Bureaus– Remarks by State Minister KIKAWADA and
Parliamentary Vice-Minister MUNEKIYO –The Financial Services Agency (FSA) held thecurrent administrative year's fourth meeting* with
Directors General of Local Finance Bureaus on April
28, 2022, both face-to-face and online. State MinisterforFinancial
Services
KIKAWADA
andParliamentary Vice-Minister MUNEKIYO gave
remarks in the conference room where the bureau
chiefs and senior FSA officials gathered.
< Remarks by State Minister KIKAWADA >State Minister KIKAWADA made the following
remarks on two topics -- "thorough support forbusinesses" and "disaster responses.“
As it is important to proactively provide support forbusinesses, each Local Finance Bureau should firstencourage regional financial institutions to continue
flexible measures to support businesses, such asutilizing support programs adopted in the"Comprehensive Emergency Measures to Address
Soaring Crude Oil and Commodity Prices" (adopted
by the government on April 26, 2022), including
further cuts in interest rates on safety-net loans andthe extension of virtually interest-free, unsecuredloans to the end of September 2022.
Each Local Finance Bureau, furthermore, is
expected to encourage regional financial institutions
to adopt appropriate measures, such as utilizing the"Guidelines for Business Revitalization, etc. of Smalland Medium-sized Enterprises" (effectuated in April
2022) and the "Revitalization Package for Small- andMedium-Sized Enterprises" (worked out in March
2022) because of a further increase in the importanceof support to rehabilitate businesses struggling withgrowing debt. In addition, each Local Finance Bureau
is expected to further reinforce its cooperation withinstitutions concerned in its region soas to establish and strengthen a viablesupport system for businesses.
Second, each Local Finance Bureau
is expected to take thorough antidisaster measures, such as confirming
the holiday and nighttime contact
systems at the time of disaster,because a strong earthquake struck off
the coast of Fukushima on March 16,2022.

< Remarks by Parliamentary Vice-Minister
MUNEKIYO >Parliamentary Vice-Minister MUNEKIYO made thefollowing remarks on two topics -- "reinforcement ofcybersecurity measures" and "reinforcement of systemrisk management structure“First, cybersecurity measures are an important
challenge to regional financial institutions and so each
Local Finance Bureau is expected to continue
cooperating with the FSA in responding to acybersecurity incident, when it occurs, andstrengthening cybersecurity measures at regional
financial institutions. Making the remarks, ViceMinister MUNEKIYO referred to the "Policy
Approaches to Strengthen Cyber Security in the
Financial Sector (Ver.3.0)" and the issuance ofreminders pertaining to cyberattacks on a number ofoccasions.
Second, the Local Financial Bureaus and the FSA
are expected to continue their solid cooperation toprepare for the occurrence of system failures, ViceMinister MUNEKIYO said, referring to a failure that
occurred in March 2022.
During the meeting with local financial bureau
chiefs, the Commissioner and other senior officials of
the FSA explained current challenges to its financial
policy and measures it has taken to address them,among others, in addition to remarks by State
Minister
KIKAWADA
andVice-Minister
MUNEKIYO. FSA officials and local finance bureau
chiefs shared the recognition of the challenges andother issues and confirmed that the FSA and the Local
Finance Bureaus will continue to jointly cope withthem.

Photo: State Minister KIKAWADA and Parliamentary Vice-Minister MUNEKIYO
give remarks during the meeting with Directors-General of Local Finance Bureaus.

5* The FSA delegates part of its authority over the inspection and supervision of regional private financial institutions, etc. tothe 11 Local Finance Bureaus (including the Okinawa General Bureau of the Cabinet Office) based on laws and regulations.
In order to ensure sufficient cooperation between the FSA and the Local Finance (Branch) Bureaus, Directors-General of
Local Finance (Branch) Bureaus and senior FSA officials meet once every three months to discuss a variety of issues

Policy Commentary Corner

Kasumigaseki Dialogue Held Online– Introduction of Measures by Ministries and Agencies –SUMIMOTO Fumiya
Unit Chief, Regional Finance Support Office, Planning and Management Division, Supervision Bureau
On May 25, 2022, The Regional Finance Support
Office and the Regional Solutions Support Team*1
held Kasumigaseki Dialogue*2 online. A total of
approximately 100 people from financial institutions,
local governments and others participated in the
Dialogue.

willingness to utilize introduced cases in their local
efforts, such as "We could deepen our understandingof introduced measures for utilization in our coming
local efforts thanks to the opportunity to directly ask
officials in charge questions," "We could learn as we
listened to part of the government organs' thoughts
about relevant systems at a time when local inquiries
through such processes as support for digitization bybusinesses and local governments are increasing," and"We found introduced measures timely because they
included those now in the process of solicitation, andwe will study how to utilize them to examine andsupport our local efforts."

Photo: Moderation and management

The session started with remarks by HORIMOTO
Yoshio, Deputy Director-General of the Supervision
Bureau and mentor of the Regional Solutions Support
Team, calling for "presenters from ministries andagencies and participants from financial institutions
and others to take part in feedback and opinion
exchanges on proactive presentations withoutworrying about making improper statements, as theKasumigaseki Dialogue is trying to ensure mental
safety and create an opportunity for unrestrictedexchange of opinions.“
In the latest Kasumigaseki Dialogue, the FSA, which
hosted it, and five other government organs, including
the Cabinet Office, cooperated with each other andofficials in charge at them introduced a wide range ofthemes, such as the Vision for a Digital Garden City
Nation, environmental policy, issues in the
agricultural sector and an analysis of regional
economies. Active discussions between officials incharge and participants, and between participants,
followed so that they could deepen theirunderstanding of policy measures concerned. In
addition, participants introduced efforts andchallenges in their localities and shared them.
Participants made comments reflecting their

Photo: Kasumigaseki Dialogue underway

The Regional Finance Support Office and theRegional Solutions Support Team will continue tosupport the penetration of measures and use of goodcases by connecting ministries and agencies tolocalities, and localities to localities.
– Introduction of measures by ministries and agencies –Vision for a Digital Garden City Nation—Based on cases of using subsidies for promotionof Vision for Digital Garden City Nation—

Digital Agency

Introduction of regional ESF finance

Ministry of theEnvironment

Promotion of innovation originated fromagricultural, mountainous and fishing villages—To vitalize agricultural, mountainous and fishingvillages—

Ministry ofAgriculture,
Forestry and
Fisheries– Announcement Pitch –Preservation and utilization of farmland in urban
areas

Ministry of Land,
Infrastructure,
Transport andTourism

Promotion of use of community data for regional
revitalization —Utilization of RESAS—

Cabinet Office*1: For the Regional Solutions Support Team, visit https://www.fsa.go.jp/policy/chiikikadaikaiketsushien-team/chiiki-kadai-

top.html (Available in Japanese)*2: Kasumigaseki Dialogue: A place jointly created by the Regional Finance Support Office and the Regional Solutions

Support Team and ministries and agencies to deepen the understanding of measures taken by ministries and agencies toachieve regional vitalization and promote efforts for the purpose in each region through direct dialogue between workinglevel officials in charge at ministries and agencies and their counterparts at financial institutions and local governments.

6

Policy Commentary Corner

Publicity of Public Insurance beyond Barriers of Ministries and Agencies– Understanding of Public Insurance Leads to Selection of Due Private Insurance Policies –NISHIOKI Yu, Deputy Director
YAMAZAKI Ichiro, Deputy Director, Insurance Business Division, Supervision Bureau
As the FSA opened a portal site* pertaining to the
public insurance system on March 11, 2020, it
interviewed officials in charge about the backgroundof the move and other issues concerned.

Photo: NISHIOKI Yu, left, YAMAZAKI Ichiro, right,
during the interview. Both are Deputy Directors at theInsurance Business Division, the Supervision Bureau

Question 1: The FSA is focusing on the explanationof public insurance. It is curious because the
Ministry of Health, Labor and Welfare is incharge of public insurance. Will you first brief
us about the FSA's efforts?

[Nishioki]
On March 11, 2022, we opened a portal on the
FSA's website to explain the public insurance system,
such as the public pension and health insurance
schemes, in an easy-to-understand manner. The
information is not only available on the website but
also can be printed out for use as a leaflet. As you said,
the ministry is in charge of public insurance and so isoverseeing it at our request.
[Yamazaki]
In addition, the ministry began operating a "public
pension simulator" on a trial basis on April 25, 2022,
to readily estimate how much can be received infuture pension benefits. The FSA engages in publicity
activities, such as introducing the simulator on theearlier mentioned portal site, and informs the financial
sector of it.

Question 2: Next, what is the purpose of yourefforts?
[Nishioki]
To take out private insurance,
it is important for people toaccurately recognize their own
life plans and risks and choose
insurance with neither excessive
nor insufficient coverage. To
understand risks people areexposed to under the welldeveloped public insurance
system in Japan, it is important
for them to recognize thecoverage of their public insurance before the selectionof private insurance.
We are thus making the earlier mentioned efforts tofacilitate the understanding of public insurance.
[Yamazaki]
A private insurer, when it attempts to sell a policy to
a prospective customer, may be able to engage incustomer-oriented marketing, such as winningunderstanding of the need for the policy or arousing a
sense of satisfaction, if it explains the policy after
helping the customer understand the public insurance
system. We think that the insurance industry may use
such a tool and that specific ways of insurance
solicitation should be worked out based on theoriginality and ingenuity of insurance companies andsolicitors. We don't think that the tool must be used
but hope that it can be of some help.
Question 3: What can be learned from the portal site
to explain the public insurance system?
[Nishioki]
On the site, the risks people are exposed to are
divided into categories, such as injury and illness, old

7 * For the portal site opened on March 11, 2022, to explain the public insurance system, visit
https://www.fsa.go.jp/news/r3/hoken/20220311.html (Available in Japanese)age and death, and easy-to-understand accounts areprovided about public insurance schemes matchingthem.
The site is also designed to guide visitors who needmore information to visit the website of the Ministryof Health, Labor and Welfare or contact offices
concerned by phone.
[Yamazaki]
It is widely known, forexample, that pension programs
exist for risks accompanied bylongevity. But the presence ofsurvivor annuity for the risk ofdeath and of the high-cost
medical expense benefit system,
which sets ceilings on monthly
payments by patients, to prepare
for injuries and diseases may
not be known. We think that itis meaningful to list them all.
We would be happy if the knowledge of the public
insurance system through the portal site helps people
who are considering taking out private insurance toconsider the types of private insurance they need andenables insurance solicitors to make proposals based
an accurate recognition of each prospective customer's
specific needs.
Question 4: What is the objective of your efforts
down the road?
[Nishioki]
The guidelines for the supervision of insurancecompanies were revised on December 28, 2021, toclarify that insurance companies and solicitors, when
proposing private insurance, are expected to giveaccounts, based on their own originality and ingenuity,
about the public insurance system.

[Yamazaki]
Based on it, we are holding dialogues with officialsof the industry on how the explanation of the public
insurance system should be. Companies sellinginsurance products, which complement public
insurance, said in most cases that it is important in
actual marketing to give accounts and information
about the coverage of public insurance based on the
coverage of their insurance. We also confirmed thepresence of companies exercising originality andingenuity in providing education to insurance

solicitors and explanations to customers based on theimportance of giving accounts and information about
the coverage of public insurance.
[Nishioki]
We will clarify the results of the dialogue in our
insurance monitoring report this summer, including
what we just mentioned, and will continue it.
We will also continue policy measures for insurance
education, including raising awareness of public
insurance. To this end, we continue cooperation with
the Ministry of Health, Labor and Welfare beyond ourdomains.

-- Comments from the Ministry of Health, Laborand Welfare –On April 25, 2022, the Ministry of Health, Laborand Welfare began operating a "public pension
simulator" on a trial basis, which is a tool to readily
estimate how much is receivable in future pension
benefits. The simulator can easily calculate theamount of future pensions benefits matching thelifestyle of each pensioner if the pensioner uses asmartphone or tablet to read the two-dimensional codein the "Nenkin Teikibin" ("Regular Pension Notice"),sent by the Japan Pension Service, and enters his or
her birthday.
The "public pension simulator" is content produced
based on advice from Professor Olivia S. Mitchell at
the University of Pennsylvania, a globally renowned
authority on financial literacy, and other experts anddrawing on advanced programs in the U.S. andEuropean countries.
Jointly with the FSA, the ministry will push ahead
with efforts to achieve the widespread use of the"public pension simulator.“
MATOBA, KIKUCHI and SHINDO
Pension Publicity Office, General Affairs Division,Pension Bureau8Article Contributed from Overseas

Headquarters for International Negotiations on Financial Policies(Basel, Switzerland)
ASAKURA Rie, Deputy Director, Europe Representative
1. Introduction
I am living in Basel, Switzerland, as Europe
Representative. I will introduce my life and duties in
Switzerland.
2. BIS's 90th Anniversary
What I have noticed while living in Basel are highcultural levels relative to the size of the city, a liberal
atmosphere, high prices of commodities, and theproximity to France, Germany and Italy geographicallyand in terms of culture and language (many commutersfrom these countries). However, people in financial
circles may be first reminded of the cylindrical BIS
Tower in front of the station when they think of Basel.
Until recently, a banner commemorating the BIS's 90th
anniversary was hung on the BIS Tower and the tower
was partially open to the public last October andNovember.
The Bank for International Settlements (BIS) wasestablished in 1930 for the purpose of collecting anddistributing reparations for the First World War from
Germany, but since then it has provided central banks
worldwide with significant platforms for opinion
exchanges. At the BIS 90 Years exhibition, the historyof the BIS and the developments that led the BaselCommittee on Banking Supervision, which wasestablished in 1974 in response to the Herstatt Bank
Crisis, to fulfill functions as the secretariat wereexplained with videos in German and English. It wasalso impressive that the exhibition provided children
with opportunities to feel finance close to them throughenjoyably designing and printing original bills andanswering quiz questions. The BIS Tower has an allglass observation space on its 18th floor, and distancesand directions to all 63 member central banks from thetower are indicated. This space also was made open to
the public and many families were enjoying taking
photos. It is said that the exhibition attracted over 8,000
residents in Basel. The city of Basel prioritizes
engagement with residents, such as the festival
involving all residents as explained later and culturalcontribution, including large companies' endowmentsof their art collections. I felt that the exhibition held by
the BIS, an international organization, was one of suchinitiatives promoted by the city.

9

Photo: With Ms. Kathy Huynh, FSB secretariat memberin charge of climate issues, inside the BIS Tower (theauthor is the left).

3. Switzerland at Present
The BIS Tower was finally made open to the public
last fall, but the exhibition was delayed one year due to
COVID-19. At present, all restrictions due to COVID19 have been lifted and people no longer need to wear
a mask when using public transportation. The numberof workers commuting to the BIS Tower are also
increasing. This February, the largest festival in
Switzerland, Fasnacht, was held for the first time inthree years. Fasnacht is a historic carnival designated asa UNESCO Masterpiece of the Oral and Intangible
Heritage of Humanity. The parade starts as early as at 4
o'clock in the morning on Monday. This year, we had
good weather that day, but the parade is sometimes
held in heavy snow. In the city of Basel, with apopulation of around 170,000, over 10,000 people
parade in various costumes while playing a piccolo,
drum or other instrument intentionally out of tune, andeven trams, one of local specialties in Basel, change
their routes during the parade. Due to too much noise,
residents have difficulties in working at home orsleeping but they spend the whole year making
preparations and give it all they've got during the threedays of Fasnacht. This is actually a festival bringing
together all people in the city.
4. My Duties in BaselI participate in climate-related working groups of the
Financial Stability Board (FSB) and workstreams(WSs) of the Network of Central Banks andSupervisors for Greening the Financial System (NGFS)

as Europe Representative of the JFSA. Dialogues with
the European financial authorities and financial
institutions and participation in conferences held in
Europe are also included in my significant mission, but
due to the outbreak of COVID-19, those meetings havebeen mainly held virtually. Nevertheless, meetings in areal setting are increasing recently, such as the COP26
held in Glasgow. Even in cases of online conferences, it
is advantageous to live in Europe, being in the sametime zone, which enables me to participate in meetingsof the NGFS held with participants from the fivecontinents and in frequent drafting work. Being in anadvantageous location, I regularly have talks
concerning Japan's initiatives with the secretariate orother related parties, thereby being able to share thebackgrounds of individual participants' statements atmeetings and deepen mutual understanding. In
particular, climate change is a new field for everyone,
and people are highly interested in the concrete
initiatives of individual authorities. Accordingly, I think
it is important to communicate Japan's initiatives at an
early stage.
At the end of this April, the FSB published the"Supervisory and Regulatory Approaches to Climaterelated Risks: Interim Report." This is a document
prepared by the FSB, whose mandate is to promoteinternational financial stability, with the focus placedon system-wide risks arising from climate change. Until
June 30, comments are being broadly sought regarding
matters to be taken into consideration by the authorities
regarding supervisory and regulatory approaches to thecollection of climate-related data and to systemic risks.
The NGFS also published documents titled "Enhancing
market transparency in green and transition finance"and "Capturing risk differentials from climate-relatedrisks," and revised NGFS scenarios are scheduled to be
published soon. Countermeasures against climatechange are entering the implementation stage, and these
documents introduce concrete efforts having been madeby respective jurisdictions to promote the sharing ofpractical challenges.
5. Reorganization of the NGFS
In January 2022, Mr. Frank Elderson, Vice-Chair of
the Supervisory Board of the European Central Bank,
resigned as the Chair of the NGFS, and Mr. Ravi
Menon, Managing Director of the Monetary Authorityof Singapore, was appointed as the new Chair, while
Ms. Sabine Mauderer, Member of the Executive Boardof the Deutsche Bundesbank, was appointed as the newVice-Chair. The reorganization of the NGFS was also
carried out in May.
The WS1 (Microprudential/Supervision) was renamed
Workstream "Supervision" and plans to discusssupervisory practices with respect to managing climate-

related risks. Mr. Jamey Hubbs, Vice-Superintendent of
the Office of the Superintendent of Financial
Institutions Canada, assumed the position of its chair inplace of the Monetary Authority of Singapore. The
WS2 (Macrofinancial) was renamed Workstream"Scenario Design & Analysis" and plans to formulate
and review NGFS scenarios. Ms. Cornelia Holthausen,
Director General Macroprudential Policy and Financial
Stability of the European Central Bank, assumed theposition of its chair in place of the Bank of England.
The WS3 (Scaling up green finance) was divided into
Workstream "Monetary Policy" (chaired by Mr. James
Talbot (Bank of England)) and Workstream "Net Zerofor Central Banks" (cochaired by Mr. Paolo Angelini(Banca d'Italia) and Ms. Simone Robbers (Reserve
Bank of New Zealand)). Additionally, the NGFS
established Task force "Nature-Related Risks" (cochaired by Ms. Sylvie Goulard (Banque de France) and
Ms. Saskia de Vries (De Nederlandsche Bank)) andTask force "Capacity Building and Training" (cochaired by Ms. Madelena Mohamed (Bank Negara
Malaysia) and Mr. Jeffery Yong (Bank for International
Settlements)).
6. Duties as a Resident Representative
I have served as a resident representative in New
York and in London, and this is my third service as aresident representative. During these years, I directly
experienced significant events, namely, the Global
Financial Crisis, Brexit, and COVID-19. I feel it isrewarding that I can exchange opinions on a wide rangeof agendas with the local authorities but at the sametime I find it difficult to deepen my understanding ofJapan due to distances from Japan despite significant
improvements in communication in a remoteenvironment.
Through talks with the local authorities, I notice that
we surprisingly share challenges over the policies anddifficulties we face in our daily duties. Although thecountries I have stayed in, my age, and the remote work
environment have changed dramatically, I personallyconsider that roles I should play as a resident
representative have not changed so much. By sharing
our awareness of issues we feel every day, I feel that
we can have sympathy and build a better relationshipfor solving issues, which is impossible only throughnegotiations. This also applies to my relationship withpeople of local Japanese financial institutions. Whenstaying outside Japan, we share a feeling as fellow
beings overcoming the barrier between the public andprivate sectors and can have discussions acrossorganizations. Such relationship will be a great asset forindividual organizations and resident representatives
over years, not limited to the short periods of ourservices as resident representatives.

10

JFSA's Major Activities in May(May 1 to May 31, 2022)
 Keynote by AMAYA Tomoko, Vice Minister for International Affairs, at “RI Japan 2022” hosted by
Responsible Investor (May 31,2022)
 Publication of the English translation of "Frequently Asked Questions Regarding “Guidelines for
Anti-Money Laundering and Combating the Financing of Terrorism”" (May 31, 2022)
 Publication of “Progress Report on Enhancing the Asset Management Business 2022” (May 27,
2022)
 Stewardship Code : 324 institutional investors have signed up to the Principles for Responsible
Institutional Investors as of April 30, 2022 (May 20, 2022)
 Study Group on Digital and Decentralized Finance Interim Report (May 20, 2022)
 The ninth meeting of the Working Group on Corporate Disclosure of the Financial System Council(May 16, 2022)
 The FSA to sponsor International Symposium on Sustainable Finance in May (May 10, 2022)
 Vitrtual Meeting of the International Forum of Independent Audit Regulators (IFIAR) (May 9,2022)
 The Council of Experts Concerning the Follow-up of Japan's Stewardship Code and Japan's
Corporate Governance Code : Twenty-Seventh Meeting (May 9, 2022)

・JFSA's official English Twitter accounthttps://twitter.com/JFSA_en

We are promoting information
dissemination using Twitter!

・ Please send your opinions using the following email address to the Public
Relations Office's personnel in charge of Access FSA.
E-mail : fsa_kouhou@fsa.go.jp

Editorial Postscript
This issue contains an interview with officials in charge, as a new attempt, in
response to the opinion that "Explanations of financial policies are often hard to

read. Interview articles are more rhythmical and may attract readers.“

We will continue carrying interview articles like the ones in this issue.
Interview using a ring light
SAITO Takafumi, Director,
Public Relations Office, FSA

11(*The opinions expressed in this report are the personal views of the author and do not necessarily reflect the organization
with which the author is affiliated.)