Japan’s financial regulator has reportedly reached out to top domestic lenders about geopolitical risks related to China.
Japan’s Financial Services Agency (FSA) has spoken with top domestic lenders about China risks, according to a «Reuters» report citing unnamed sources.
The Japanese watchdog's request to look into the matter is related to rising geopolitical tensions with China and whether or not local banks have plans in place if the situation worsens, such as the potential for US sanctions over the issue of Taiwan’s political status.
Currently, the FSA is just seeking insights and information without giving any specific directions for actions that banks need to take. The regulator’s request to look into China-related geopolitical risks was made in May, the report added.
