IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Japan's Financial System: Its Perspective and the Authorities' Roles in Redesigning and Administering System

Listed author(s):
  • Baba, Naohiko

    (Bank of Japan)

  • Hisada, Takamasa

    (Bank of Japan)

Registered author(s):

    This paper discusses Japan's financial system, in particular its perspective and the authorities' roles in redesigning and administering the system. Japan's financial system, characterized by the "main bank system," depends heavily on banks and differs greatly from the U.S. financial system, which depends heavily on capital markets. We focus on changes in the financial environment such as IT innovation, globalization, and financial deregulation. We argue that these changes influence the functions and roles of banks and capital markets in favor of the latter. Many economists now regard the U.S. system as a model to be emulated. We claim, however, that Japan's system is not likely to shift rapidly toward the U.S. system in the near future, given Japan's unique financial structure including the large share of public finance. The Japanese authorities are expected to seek an optimal balance between capital markets and banks with a view to ensuring the efficient and stable functioning of the nation's overall financial system.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Institute for Monetary and Economic Studies, Bank of Japan in its journal Monetary and Economic Studies.

    Volume (Year): 20 (2002)
    Issue (Month): 2 (April)
    Pages: 43-93

    in new window

    Handle: RePEc:ime:imemes:v:20:y:2002:i:2:p:43-93
    Contact details of provider: Postal:
    2-1-1 Nihonbashi, Hongoku-cho, Chuo-ku, Tokyo 103

    Phone: +81-3-3279-111
    Fax: +81-3-3510-1265
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ime:imemes:v:20:y:2002:i:2:p:43-93. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kinken)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.