Japanese banks need to improve op risk management, says BOJ

REGULATORY UPDATE

TOKYO -- Some Japanese financial institutions need to improve their op risk management, according to a report released in March by the Bank of Japan (BOJ). The central bank said in its Review of on-site examination policy in fiscal 2002 and plans for fiscal 2003 that some firms had failed to manage operational risks caused by systems integration. Japanese banks have undergone a period of major consolidation over the past three years, with 11 major institutions merging into four.

In fiscal 20