- The financial instruments don’t have to be marked to market
- FSA warns regional lenders they need proper risk management
Japan’s financial regulator urged the country’s regional banks to pay closer attention to the risks of investing in so-called repackaged government bonds, which are gaining popularity, people familiar with the matter said, speaking to Bloomberg.
At a regular meeting with regional bank heads, a senior official at the Financial Services Agency (FSA) told lenders that they should make sure they have proper risk management in place for the financial instruments.