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A Comparison of National Banks in Japan and the United States between 1872 and 1885


  • Miyajima, Shigeki

    (Fuji Tokoha U)

  • Weber, Warren-E

    (Federal Reserve Bank of Minneapolis)


In 1872, Japan established a national banking system modeled closely on that in existence in the United States at the time. The experience of the two countries with national banking was very different, however. The paper documents that the Japanese national banking system was smaller, less highly leveraged, and did less financial intermediation than the U.S. system. The paper describes the national banking legislation in the two countries and presents evidence on their different banking experiences. It then argues that, for the most part, the differences were not due to subtle differences in the banking legislation in the two countries. Rather, it argues that the differences were due to Japan's lesser degree of experience with banks and less developed banking institutions when the system was adopted. There also was more concern with establishing banknotes of national banks as a replacement for government-issued paper currency in Japan.

Suggested Citation

  • Miyajima, Shigeki & Weber, Warren-E, 2001. "A Comparison of National Banks in Japan and the United States between 1872 and 1885," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 19(1), pages 31-48, February.
  • Handle: RePEc:ime:imemes:v:19:y:2001:i:1:p:31-48

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    Cited by:

    1. Masato Shizume & Masayoshi Tsurumi, "undated". "Modernizing the financial system in Japan during the 19th century: National Banks in Japan in the Context of Free Banking," Working Papers 1607, Waseda University, Faculty of Political Science and Economics.

    More about this item

    JEL classification:

    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913


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