
Contents
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Economic Setting to 1990 Economic Setting to 1990
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1990–2010: Basic Contours 1990–2010: Basic Contours
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Implications Implications
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Financial Sector Structure and Evolution Financial Sector Structure and Evolution
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Banks Banks
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Bank Consolidation Bank Consolidation
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Bank Assets Bank Assets
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Insurance Insurance
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Non-Life Insurance Non-Life Insurance
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Life Insurance Life Insurance
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Insurance Company Investments Insurance Company Investments
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Securities Firms Securities Firms
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Capital Markets: Equity Capital Markets: Equity
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Raising Funds Raising Funds
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Trading Trading
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Capital Markets: Bonds Capital Markets: Bonds
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Start-ups Start-ups
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Venture Capital Funds Venture Capital Funds
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Jasdaq and Mothers Jasdaq and Mothers
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Overview of Creating New Firms Overview of Creating New Firms
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Household Financial Assets Household Financial Assets
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Corporate Borrowers Corporate Borrowers
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Composition of Liabilities Composition of Liabilities
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Corporate Fundraising Corporate Fundraising
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Government Regulatory Policies Government Regulatory Policies
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MOF to FSA and BOJ MOF to FSA and BOJ
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Regulatory Change Regulatory Change
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Direct Government Financial Intermediation Direct Government Financial Intermediation
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Fiscal Investment and Loan Program Fiscal Investment and Loan Program
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Post Office Privatization Post Office Privatization
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Other Changes Other Changes
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Summary Summary
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Tokyo as an International Financial Center Tokyo as an International Financial Center
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Attracting Foreign Capital Attracting Foreign Capital
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Japan as a Supplier of Capital to the World Japan as a Supplier of Capital to the World
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Tokyo as an International Equity Market Tokyo as an International Equity Market
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Evaluation Evaluation
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Japanese Financial Institutions as Global Players Japanese Financial Institutions as Global Players
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Summary Summary
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Impact Impact
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Continued Misallocation Continued Misallocation
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Capital Output Ratios Capital Output Ratios
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Incremental Capital-Output Ratio Incremental Capital-Output Ratio
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Return on Assets and Equity Return on Assets and Equity
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The Role of Shareholders The Role of Shareholders
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Foreign and Activist Shareholders Foreign and Activist Shareholders
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Conclusion Conclusion
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References References
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Three Japan: Ongoing Financial Deregulation, Structural Change, and Performance, 1990–2010
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Published:November 2013
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Abstract
This chapter examines the evolution of Japan's financial sector. It describes a number of structural changes including a major consolidation of the banking industry, partial reform of the government role in the financial sector, and the rise in foreign ownership of corporate equity. The chapter begins by providing a brief background of the changes before 1990, particularly about the major domestic financial crisis caused by the late 1980s bubble. Then, it considers the macroeconomic context during the 1990–2010 period with an analysis of the various components of the financial system. Most of the data in this chapter covers the 2010 fiscal year up to March 31, 2011.
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