The Japanese Banking Crisis of the 1990's: Sources and Lessons
IMF Working Papers, January 1, 2000
Source details
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- The Japanese Banking Crisis of the 1990's: Sources and Lessons
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Bibliographic details
- Authors: David Woo, Akihiro Kanaya
- Published: January 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451842401.001
Summary
- Paper examines deterioration in the health of Japan's banking system over a large part of the past decade.
- Traces roots of the crisis to accelerated deregulation and deepening of capital markets without an appropriate adjustment in the regulatory framework.
- 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.
Major findings
- Accelerated deregulation and deepening of capital markets occurred without a corresponding adjustment in regulation, contributing to the crisis.
- Weak corporate governance in Japanese banks undermined timely corrective action.
- Regulatory forbearance prolonged the distress of the financial system and may have been unnecessary.
Subject coverage and keywords
- Subject: Bank credit; Banking; Capital adequacy requirements; Commercial banks; Corporate governance; Economic sectors; Financial institutions; Financial regulation and supervision; Loans; Money
- Keywords include: 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
Content in this bundle
- The Japanese Banking Crisis of the 1990s: Sources and Lessons - WP/00/07