INTERVIEW: Japan Wary of U.S. Deviation from Int’l Financial Regulation

Tokyo, Sept. 22 (Jiji Press)–The United States’ possible deviation from the international framework for financial regulations would have undesirable consequences, Toshiyuki Miyoshi, a senior official at Japan’s Financial Services Agency, warned. “The United States has played a significant role” in financial regulations, Miyoshi, vice minister for international affairs at the FSA, said in a recent interview. Any U.S. deviation from the framework “could lead to a regulatory divide, which will bring undesirable results for the global financial sector as a whole,” he said. Miyoshi made the comments as the administration of U.S. President Donald Trump is pushing to ease banks’ capital adequacy requirements to spur economic growth. “Compared to the real economy, the United States still has a large presence in the financial world,” he said. Japan will play a role in mediating between the United States and the European Union and contribute to international discussions by taking advantage of its neutral position, Miyoshi said. He said financial regulators across the world need to share information on investment funds and other nonbank financial entities, which are “not always subject to strict regulation and supervision as banks are.” END [Copyright The Jiji Press, Ltd.]