The Japanese Banking Crisis of the 1990's: Sources and Lessons

January 1, 2000

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David Woo, and Akihiro Kanaya. The Japanese Banking Crisis of the 1990's: Sources and Lessons, (USA: International Monetary Fund, 2000) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

For a large part of the past decade, Japan has witnessed a steady deterioration in the health of its banking system. This paper examines what went wrong and why it has taken so long for the system to recover. While the paper traces the roots of the crisis to accelerated deregulation and deepening of capital markets without an appropriate adjustment in the regulatory framework, it identifies weak corporate governance and regulatory forbearance as the two factors behind what might have been an unnecessary prolongation of the distress of the financial system.

Subject: Bank credit, Banking, Capital adequacy requirements, Commercial banks, Corporate governance, Economic sectors, Financial institutions, Financial regulation and supervision, Loans, Money

Keywords: Asset growth, Bank capital, Bank credit, Bank management, Bank ownership structure, Bank Restructuring, Bank restructuring process, Bank share, Banking Crisis, Book value, Capital adequacy requirements, Capital ratio, Capitalized bank, City bank, Commercial banks, Corporate governance, Equity holding, Global, Japan, Loans, Long-term credit, Parent bank, Trust bank, WP

Publication Details

Pages:

47
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/007
Stock No:

WPIEA0072000
ISBN:

9781451842401
ISSN:

1018-5941

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