On 27 November 2023, HM Treasury (HMT) published a joint statement on the UK-Japan Financial Dialogue and Financial Regulatory Forum, which took place in Tokyo between Japan (the Ministry of Finance and the Financial Services Agency) and the UK (HMT, the Bank of England and the Financial Conduct Authority).
The two dialogues were held as a joint event in order to facilitate a deep and meaningful exchange across a broad set of economic, fiscal and financial regulatory discussion points.
The joint statement lays out the participants’ shared views on key issues, including:
- There was an agreement to work together to maximise the potential of digital transformation while addressing its associated risks and challenges. The two countries shared information on developments in the areas of Central Bank Digital Currencies, cryptoassets and stablecoins in their respective jurisdictions.
- Both sides welcomed the progress made under Japan’s G7 Presidency to secure economic security and resilience and reiterated the importance of multilateral and bilateral collaboration on global challenges. They agreed to work together to enhance supply chain resilience and to continue to cooperate to strengthen the international financial architecture.
- On climate, both sides reaffirmed their commitment to meeting the goals of the Paris Agreement and discussed their respective paths to achieving net-zero emissions by 2050.
- There were discussions on innovation and developments in each jurisdiction’s respective fintech markets and the benefits of supporting a business environment that encourages growth and development of the sector.
- Views were also exchanged on reforms to the asset management industry in respective jurisdictions and the importance of ongoing efforts in this area.
- On banking, Japan and the UK discussed the banking turmoil in spring 2023 and drew lessons and exchanged views on banking regulation and supervision. They also informed each other of the state of implementation of the last parts of the Basel III reforms in their respective jurisdictions and reaffirmed the importance of implementing all aspects of those reforms in full, consistently and as soon as possible.