The main elements of Japan's financial system are much the same as those of other major industrialized nations: a commercial banking system, which accepts deposits, extends loans to businesses, and deals in foreign exchange; specialized government-owned financial institutions, which fund various sectors of the domestic .
The main elements of Japan's financial system are much the same as those of other major industrialized nations: a commercial banking system, which accepts deposits, extends loans to businesses, and deals in foreign exchange; specialized government-owned financial institutions, which fund various sectors of the domestic .
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..
The BOJ is not a regulatory authority under the Banking Act, but it does conduct on-site examinations based on bilateral agreements with financial institutions with current accounts with the BOJ under the Bank of Japan Act..
The main elements of Japan's financial system are much the same as those of other major industrialized nations: a commercial banking system, which accepts deposits, extends loans to businesses, and deals in foreign exchange; specialized government-owned financial institutions, which fund various sectors of the domestic .
The Banking Act (formulated in 1927, then thoroughly revised in 1981) comprises a total of ten chapters which stipulate regulations relating to the scope of banking business, capital adequacy requirements, accounting (including disclosure provisions), supervision of banks, and so forth..
The Banking Act empowers the Commissioner of the JFSA to request reports and materials concerning the business or financial conditions of a bank (including its agencies), to conduct on-site inspections at bank premises, to penalize misconduct (suspension of a bank's operations or revocation of its license) and to order .
The Financial Services Agency (FSA) is the chief regulator of Japan's financial services industry, responsible for maintaining its stability and integrity..
The Financial Services Agency of Japan (JFSA) is the regulator responsible for the authorization and supervision of financial institutions, including banks, trust banks, trust companies, funds transfer/settlement-related service providers, insurers, securities firms, investment advisors, asset managers and funds..
One of the direct causes of the banking crisis in Japan was the bursting of the asset price bubble in the period from the late 1980s to the early 1990s.
After the 1985 Plaza Accord, Japan pursued expansionary fiscal and monetary policies to counter fears of recession brought about by the sharp appreciation of the yen..
The bill was designed “to provide for the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes.” The measure was sponsored by Sen..
Japan had a “lost decade.” The reason is that the authorities began to work on the banking sector problem seriously and decisively only after the country suffered from a systemic banking crisis in 1997–1998..
History.
The Bank of Japan was established under the Bank of Japan Act (promulgated in June 1882) and began operating on October 10, 1882, as the nation's central bank.
The Bank was reorganized on May 1, 1942 in conformity with the Bank of Japan Act (hereafter the Act of 1942), promulgated in February 1942..
The Bank of Japan Head Office is centrally located in Tokyo and easily accessible by train or taxi.
The Bank of Japan Head Office is in Nihonbashi, just a short walk from the Mitsukoshi-mae Station, Kanda Station and Tokyo Station , among others..
Monetary Policy Board
Kazuo Ueda, Governor of the BOJ.
Uchida Shinichi, Deputy Governor of the BOJ..
In Japan, the Financial Services Agency (JFSA) serves as a regulatory authority of financial institutions based on the Banking Act..
The Financial Services Agency of Japan (JFSA) is the regulator responsible for the authorization and supervision of financial institutions, including banks, trust banks, trust companies, funds transfer/settlement-related service providers, insurers, securities firms, investment advisors, asset managers and funds..
The Bank issues banknotes (Bank of Japan notes) and works to ensure smooth circulation of banknotes throughout the country and to maintain their credibility.
Through its conduct of monetary policy, the Bank aims at achieving price stability, thereby contributing to the sound development of the nation's economy..
On the other hand, the Bank of Japan (BOJ) is not a regulatory authority per se under the Banking Act, but it conducts on-site examinations in order to maintain a safe and sound financial system
Banks are subject to various laws in addition to their primary law, the Banking Act
Other principal laws concerning banks are described below
This Act stipulates that banks or other companies engaged in financial business may not acquire or hold more than 5% of voting right of all shareholders in another company in Japan
The Banking Act provides the licensing criteria
The Prime Minister also has a discretion to grant licences and to impose such conditions as is considered appropriate on any licence (Article 4 (4), Banking Act)
A bank must be a stock corporation incorporated under the Companies Act of Japan (Article 4-2, Banking Act)
The Bank of Japan (BOJ), the central bank of Japan, is responsible for overseeing payment systems and supervising banks through on-site examinations for the purpose of understanding the business operations and the asset status of the banks
The BOJ executes its responsibilities pursuant to the contracts it has with the banks
Japanese statutory corporation
Japanese statutory corporation
