The Bank of Japan (BOJ) released an annex to its Financial System Report, detailing the expanding use of generative AI (GenAI) by Japanese financial institutions, from administrative tasks to core operations. The report highlights the need for these institutions to understand specific GenAI risks, such as information leakage and output uncertainty, and to enhance their risk management frameworks. The BOJ conducted a survey of 150 financial institutions for this report and will continue dialogue on GenAI use and risk management.