This peer review examines two topics relevant for financial stability in Japan: the macroprudential policy framework, and the framework for resolution of financial institutions. The review focuses on the steps taken by the Japanese authorities to implement reforms in these areas, including with respect to the relevant recommendations in the 2012 Financial Sector Assessment Program (FSAP) report by the International Monetary Fund.

The peer review finds that progress has been made on both topics, but that there is additional work to be done. On the macroprudential framework, this involves strengthening the institutional arrangements for financial stability; improving inter-agency cooperation to develop coordinated systemic risk assessments; and broadening financial stability analysis. On resolution, this involves developing guidance on the choice of resolution measures; clarifying preferred resolution options and provisions for funding; developing sector-specific adaptations to, and strategies based on, the resolution regime; and ensuring that court involvement does not compromise implementation of resolution measures. The peer review report sets out recommendations to the Japanese authorities in order to address these issues.