FinCity.tokyo

Interview: Strengthening Japan’s Banking System in the Era of Sustainability

Yoshiaki Ueno, Senior Managing Executive Officer and Director at MUFG Bank Ltd., and Chairman of the Planning Committee of the Japan Bankers Association (JBA), talks about JBA’s role in strengthening Japan’s banking system and promoting sustainable finance.

Could you tell us about the role of the Japanese Bankers Association (JBA) in the Japanese economy?

The Japanese Bankers Association (JBA) is an industry organization representing Japan’s banking sector, with the objective of contributing to the nation’s economic growth and prosperity through the sound development of banks. Its membership includes domestic banks, bank holding companies, and various regional bankers associations.
The JBA has a wide range of activities, including facilitating banks’ socially responsible functions such as providing funds, deposits, and asset
management, as well as making policy proposals and public statements. Our activities also include initiatives for preventing financial crime and protecting consumers, planning and operating essential payment systems, promoting compliance, and operating customer service hotlines.

As chairman of the JBA Planning Committee, what initiatives are you currently working on? What is the theme for this year?

At JBA, we have positioned this fiscal year as “a year to contribute to accelerating Japan’s growth, addressing societal issues, and laying the
foundation for a vibrant future.” We are pursuing our activities based on the following three pillars: The first pillar is “Accelerating the Virtuous Cycle of Growth and Distribution through Activation of the Investment Chain.” For Japan, which faces a declining population, bold investment and productivity improvement are essential for sustainable growth. It is important to encourage growth investments and support funding demand through indirect financing by banks, asset management, or direct finance via capital markets.
This year, we established a “Working Group on the Ideal Form of Medium- and Long-Term Financial Intermediation” and discussions are ongoing with experts, authorities, and other financial intermediaries. In October, JBA hosted an event at the Japan Weeks 2025 focused on attracting overseas investment funds. We also created and distributed to member banks a guideline on the use of “corporate value collateral rights,” a new form of business lending making use of business evaluation capabilities.
Regarding promoting household investments, we are leveraging systems such as the new NISA and iDeCo, cooperating with J-FLEC on financial and economic education, and thoroughly implementing customer-oriented business practices.
The second pillar is “Realizing Secure, Safe, and Highly Convenient Financial Infrastructure Suited to the Times.” Financial infrastructure such as payments underpins society and the economy, and we are pursuing both safety and convenience improvements. We are finalizing  digitization of bills and checks to reduce costs and risks and improve productivity across society. While maintaining stable operation of the Zengin System— an online network that links financial institutions nationwide— we are also addressing the API Gateway introduced in November and developing the 8th generation Zengin System.
This year, we established a “Study Group on the Future Vision for Payment and Settlement Systems” under the Zengin-Net umbrella to discuss, from a long-term perspective, the ideal and future form of Japan’s payment and settlement systems, taking into account user needs and advancements in domestic and international systems.
The third pillar is “Maintaining and Advancing a Sound and Robust Responsible Financial System.” As financial crime methods diversify and grow more sophisticated, there is increasing social demand to prevent crimes such as special fraud. On anti-money laundering, we  established a joint organization and launched an AI scoring service. We are also developing a system for financial institutions to share information on fraudulent accounts. In addition, we are implementing awareness-raising activities in cooperation with authorities and private financial bodies to ensure customers can conduct financial transactions safely and securely, continuing public-private joint initiatives.
In this way, we are addressing a wide range of topics, striving for the realization of autonomous and sustainable growth for the Japanese economy, the provision of safe and secure financial services, and maintaining the financial system.

What is your view on the importance of sustainability efforts by financial institutions?

The significance of sustainability initiatives by financial institutions goes beyond fulfilling social responsibilities—they are directly connected to sustainable economic growth and societal stability. The advancement of climate change has resulted in more frequent extreme weather and natural disasters, seriously impacting corporate activity and people’s livelihoods. In such an environment, financial institutions have a major role to play in solving societal challenges, such as building a decarbonized society, a circular economy, and conserving natural capital and biodiversity, by directing the flow of funds appropriately.
Specifically, it is important to promote decarbonization of the real economy and resolve societal issues through investments and loans in renewable and energy-saving fields, promotion of transition finance, and expansion of sustainable finance. Responding to climate change requires not only reducing greenhouse gas emissions, but also conserving natural capital, respecting biodiversity and human rights, and ensuring a just transition.
By working on sustainability, financial institutions contribute to solving issues in society and business while also enhancing their own economic and corporate value. For example, by setting impact indicators and KPIs, managing progress quantitatively and visualizing targets, they can deepen dialogue with stakeholders, and improve transparency and trust.
By adding an “impact” perspective to conventional sustainability efforts, creating social-problem-solving businesses and innovation, supporting startups and new businesses, and engaging in blended finance through public-private partnerships, financial institutions should aim to create social impact while also enhancing corporate value.

At Tokyo Sustainable Finance Week (TSFW), you gave closing remarks.
What role does Tokyo play in sustainable finance?

In sustainable finance, Tokyo plays a vital role as Asia’s leading international financial city, tasked with balancing climate change solutions and economic growth. Under the “Global Financial City: Tokyo” vision, the Tokyo Metropolitan Government places the promotion of sustainable finance as a core strategy and is aggressively rolling out various initiatives, including developing market infrastructure, promoting fundraising, and supporting businesses and professionals.
First, Tokyo has a major role in market foundation development and dissemination of information. The city hosts the Tokyo Sustainable Finance Week and forums, bringing together experts and stakeholders from Japan and abroad to share the latest trends and foster development of the market.
Working with the Tokyo Stock Exchange, Tokyo is also building reliable information infrastructure for sustainable fundraising tools such as green bonds, creating an environment where investors can invest with confidence.
Next, Tokyo facilitates funding for green projects. Tokyo was the first local government in Japan to issue green bonds, using the funds for environmental and climate projects, providing a model for other local governments and companies. The city is also working to attract domestic and international green funds, aiming to make Tokyo a sustainable finance hub.
Furthermore, Tokyo is vitalizing the overall market by fostering talent and adopting advanced technology. The city offers grants to support the relocation of overseas asset management and fintech companies engaged in green finance to Tokyo. Tokyo is also promoting advanced initiatives like integrating blockchain into carbon credit trading, encouraging innovation with digital technologies. Through such efforts, Tokyo is becoming a hub for sustainable finance—creating capital flows to balance climate action with economic growth, involving businesses and investors from Japan and abroad, and playing a leading role in shaping global sustainability trends.

At TSFW, you also spoke about the “Zengin Initiative 2025 for Achieving Carbon Neutrality.” Please tell us more about this.

Since formulating the “Carbon Neutrality Initiative 2025” in 2021, the JBA has been updating the initiative annually based on member banks’ activities and progress in domestic and international discussions, providing information to enhance members’ knowledge and making policy proposals to government meetings.
The four basic policies are: fulfilling the role as financial and social infrastructure; collaboration with industry; making proposals to the government and ministries; and participating in international discussions.
Priority areas of focus include: enhancing and streamlining engagement, expanding the breadth of sustainable finance, improving disclosures,
addressing climate risks, and integrating nature-positive and circular economy initiatives. Specific actions include holding seminars with ministries and experts, running information platforms, collaborating with economic groups, issuing policy recommendations, and participating in international rule-making.
In particular, for improved engagement, the JBA is supporting members in measuring and identifying GHG emissions and holds seminars on sector-specific response and action plans. To promote sustainable finance, JBA is engaged in discussions on ensuring the reliability and effectiveness of transition finance and coordinating with SME organizations.
Efforts are also being made to improve disclosure, such as addressing challenges in Scope 3 measurement, and the relationship between corporate and bank disclosures. For climate risk, JBA participates in discussions on developing data and methodologies for scenario analysis. Integrated initiatives include active participation in TNFD disclosure recommendations and development of global circular protocols.
Through these efforts, JBA aims to contribute to achieving carbon neutrality/net zero in Japan by collaborating and coordinating with diverse stakeholders.　

Finally, as a board member, what expectations do you have for FinCity.Tokyo?

Tokyo is home to many Japanese companies that are active both domestically and internationally, is the center of Japan with large household financial assets, and is also a hub for various Japanese financial institutions and businesses.
I believe that sustainability and technology will be the keys for Tokyo to further increase its global presence in the future. Regarding sustainability, the banking industry will continue to contribute to society by engaging with customers and providing financial products such as green bonds and sustainable loans, so that Tokyo can play its role as a leading sustainability finance hub in Asia.
Regarding technology, as a private bank, we are leveraging the latest technologies such as blockchain technology and AI to provide high value-added products and highly convenient financial services.In Tokyo, too, we would like to actively incorporate and promote new technologies and work together to increase the attractiveness of the Tokyo market.
We hope that FinCity.Tokyo will be more active than ever in disseminating the appeal and characteristics of Tokyo as an international financial city to overseas financial institutions and asset managers, as well as disseminating opinions necessary for improving the environment in light of the international competitive environment. The banking industry will continue to contribute to building a sustainable future together with FinCity.Tokyo and various other stakeholders.