Financial Services Agency Releases Comprehensive Analysis of Climate-Related Risks in Banks
Tokyo, Japan – August 29, 2025 – The Financial Services Agency (FSA) of Japan today announced the publication of its latest report, “FSA Analytical Notes – Collection of Financial Services Agency Analysis Examples (July 2025)
The report, published at 17:00 JST on August 29, 2025, highlights the FSA’s commitment to advancing the understanding and management of climate-related financial risks within the banking sector. By employing a dual approach of quantitative analysis and text data analysis, the FSA aims to provide a more comprehensive and nuanced understanding of how climate change impacts financial institutions.
Key Contributions of the Report:
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Innovative Analytical Methodologies: The “FSA Analytical Notes” showcase the FSA’s dedication to pioneering sophisticated analytical techniques. The integration of quantitative methods allows for the measurement and modeling of potential financial impacts stemming from climate change, such as credit risk and market risk. Simultaneously, the application of text data analysis enables the examination of qualitative information, including disclosures, corporate reports, and news, to gauge how banks are identifying, managing, and disclosing their climate-related exposures and strategies.
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Enhanced Risk Assessment for Banks: The findings from these analytical approaches are expected to equip banks with more robust tools and insights for their own risk assessment frameworks. By understanding the granular details of climate-related risks, financial institutions can better prepare for potential disruptions, adapt their business models, and ensure the resilience of the financial system.
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Promoting Transparency and Disclosure: The report underscores the importance of transparent disclosure regarding climate-related risks. The text data analysis component, in particular, can shed light on the quality and completeness of banks’ disclosures, encouraging greater accountability and fostering investor confidence.
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Contribution to Global Financial Stability: As climate change poses a systemic risk, the FSA’s proactive approach and the sharing of these analytical methodologies contribute to the broader global effort to understand and mitigate climate-related financial risks. By publishing these examples, the FSA aims to share best practices and encourage similar analytical initiatives within the international financial community.
The “FSA Analytical Notes” serve as a testament to the FSA’s forward-looking strategy in addressing emerging challenges in the financial sector. The methodologies and findings presented in this report are anticipated to be invaluable resources for banks, regulators, investors, and researchers alike, contributing to a more sustainable and resilient financial future for Japan and beyond.
The full report is available on the Financial Services Agency’s official website.
FSA Analytical Notesー金融庁分析事例集ー（2025.7）＜定量的分析手法及びテキストデータ分析手法による銀行の気候関連リスクに関する分析＞について公表しました。
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金融庁 published ‘FSA Analytical Notesー金融庁分析事例集ー（2025.7）＜定量的分析手法及びテキストデータ分析手法による銀行の気候関連リスクに関する分析＞について公表しました。’ at 2025-08-29 17:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.