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Worried about Brexit risk, Japan's financial regulator extends safety net 

August 24, 2016

The Economic Times

Japan's financial regulator is extending provisions that help regional financial institutions get public funds in response to risks posed by Britain's vote to leave the European Union, sources said on Tuesday. 

The Financial Services Agency, the regulator overseeing banks, securities brokerages and other financial institutions, is extending by five years a programme allowing regional banks and credit unions to borrow from the public purse more easily, people knowledgeable about the about the matter told Reuters. 

The extension comes as authorities remain wary of risks posed by Brexit. 

The day after Britain's June 23 vote, Japan's stocks suffered their biggest daily fall in more than five years, while financial markets were roiled and fears raised of a shock to the already fragile global economy. 

The Nikkei's drop was its steepest since March 2011, when threats of a nuclear catastrophe following a devastating earthquake and tsunami had had sent financial markets reeling. Read more

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