The Financial Services Agency (FSA) has announced that it will revise the "personal guarantee" system, in which individual business owners act as joint guarantors when financial institutions provide loans to SMEs.
Starting next fiscal year, we are considering imposing a duty of explanation when financial institutions request personal guarantees.
When SMEs receive loans from financial institutions, the owner is often required to provide a personal guarantee. pointed out.
In response to this, the Financial Services Agency announced that it will review the system to encourage financial institutions to make loans that do not rely on personal guarantees.
Specifically, we are considering revising the Financial Services Agency's supervisory guidelines by the end of this year, requiring managers to explain the reasons for requests for personal guarantees by financial institutions, which will be applied from next fiscal year. Policy.
Regarding this review, Minister of Finance Suzuki said at the House of Councilors' Finance and Financial Affairs Committee on the 1st, "It is important to establish financing practices that do not rely on personal guarantees, regardless of the size of the business. I hope that the sense of conviction will deepen."