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Japan Finance Organization for Municipalities (JFM, 地方公共団体金融機構) was established on 1 August, 2008 with the whole capital contributed by all local governments (prefectures, cities, towns, villages, and special wards of Tokyo) as a joint fund-raising organization for local governments. JFM began operations on 1 October, 2008, succeeding to the assets and liabilities of Japan Finance Corporation for Municipal Enterprises (the former JFM)

The main purpose of the institution is to provide long-term funding at low interest rates to local governments and support fund-raising of local governments in the capital markets. JFM serves as 'a joint fund-raising organization of local governments, by local governments, and for local governments'. The objective of JFM is to secure a system under which local governments assume the responsibility for autonomous and independent management.

Furthermore, to ensure corporate governance through appropriate risk management and monitoring operations by the Supervisory Committee and external auditors and closely follow up financial needs of local governments and changes in their fund-raising environment, and to develop appropriate services accordingly. It will achieve the primary objective by the stable supply of long-term and low-interest funds to local governments.

To obtain confidence from the markts, JFM conducts appropriate risk management, maintains sound financial foundation, and discloses information properly. It will enable us to raise funds in a stable and efficient manner, and to contribute to the sound development of capital markets.
 

In Japan, the Financial Services Agency (金融庁, Kin'yūchō) is responsible for overseeing banking services in order to ensure the stability of the financial system of Japan. Bank of Japan (BOJ) is not a regulatory authority under the Banking Act, but it conducts on-site examinations in order to maintain a safe and sound financial system. These examinations are based on bilateral agreements between the BOJ and financial institutions that have current accounts with it under the Bank of Japan Act.