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Japan Financial Services Agency: Publication Of "FSA Analytical Notes (2025.7)"

The FSA published the English version of "FSA Analytical Notes (2025.7)". PDFfull text

As financial institutions’ business environments and profit structures change, it is important to understand economic and market trends based on data, and to accurately grasp the business conditions of individual financial institutions and also the resilience and vulnerabilities of the financial system as a whole. From this perspective, the FSA has been focusing on the utilization of granular data, such as transaction-level bank loan data and financial data on individual corporations. Some case examples of data analyses using such granular data are published as a series of reports titled “FSA Analytical Notes.”

This issue contains "A Quantitative and Textual Analysis of Climate-Related Risks in the Banking Sector".

PDFA Quantitative and Textual Analysis of Climate-Related Risks in the Banking Sector
This paper attempts a comprehensive assessment of banks’ initiatives on climate change by conducting a quantitative analysis of greenhouse gas (GHG) emissions and a textual analysis of disclosure reports using large language models (LLMs). The quantitative analysis demonstrates that, although GHG emission levels differ depending on business types and other factors, overall GHG emissions from banks are on a declining trajectory. Furthermore, the textual analysis indicates that references to climate change in the disclosure reports have increased, in line with the declining trend identified in the quantitative analysis.

Enhancing the use of data in financial supervision and policy-making is a medium- to long-term agenda. The FSA will continue to build its data analysis capabilities and data infrastructure.

* Unless otherwise noted, the figures and tables in this report were prepared by the FSA.

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