Japan's Financial Services Agency (FSI) has identified private credit as a key policy to meet rising corporate funding demand. This comes despite ongoing turbulence in overseas private credit markets. The move reflects a shift in Japanese corporate behaviour, with rising inflation leading firms to invest in long-term investments. The Financial Services Association's deputy director-general in charge of financial markets, Michinori Haba, said that private credit could be a key component of the government's new strategy, which involves monitoring of governance and developments overseas. M&A activity involving Japanese companies more than doubled in the previous year to a record 51 trillion €100,000.