Japan’s financial regulator plans to examine banks’ lending to private equity and other funds in the U.S. and elsewhere to determine whether they have proper risk management.
Toshinori Yashiki, a senior official at the Financial Services Agency, said the company has attracted attention as the country’s largest banks expand so-called subscription financing and lending to funds that provide equity or credit to private companies.
“It is necessary to check whether there is effective governance and risk management suitable for high-growth products,” Yashiki, director general of the agency’s strategy development and management office, said in an interview.
