🇯🇵Japan’s Financial Services Agency draft would scrutinize data-center investments, lending policies, project reviews, and risk management before June finalization.

Japan’s Financial Services Agency plans to examine whether domestic financial institutions adequately assess credit risks related to lending to overseas non-bank lenders and real-estate companies. The proposal is expected to be incorporated into a draft of the agency’s annual strategic priorities.

The review will separately focus on investment and lending policies for facilities including data centers. It will cover project-review procedures and the risk-management systems used by financial institutions when evaluating those exposures.

The agency’s focus comes as major Japanese banks expand lending to overseas non-bank financial intermediaries. Regional banks and other financial institutions have also increased real-estate lending while property prices in major metropolitan areas continue to rise.

The annual strategic-priorities plan remains in draft form and is scheduled for finalization by June 2027. The source did not describe the proposal as a completed rule or identify specific banks, data-center projects, exposure amounts, or new capital requirements.