Japan: Staff Report for the 2001 Article IV Consultation
IMF Staff Country Reports, August 10, 2001
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- Japan: Staff Report for the 2001 Article IV Consultation
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Bibliographic details
- Published: August 10, 2001
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451820478.002
Overview
- The new government in Tokyo has a window of opportunity to address the deep-seated structural problems that lie at the root of Japan's lackluster economic performance over the past decade.
- The government has appropriately identified banking sector problems as a top priority.
- Broader reforms are needed to strengthen the regulatory framework and lay the basis for a sound banking system.
- In the near term, fiscal policy should remain responsive to changing economic circumstances.
- Enhancing the transparency of the monetary policy framework is required.
Key findings and analysis
- Structural problems are deep-seated and are the root of Japan's lackluster economic performance over the past decade.
- Banking sector problems are a top priority for the government.
- Regulatory framework weaknesses impede the establishment of a sound banking system.
- Fiscal policy needs to be responsive to changing economic circumstances in the near term.
- Monetary policy transparency requires enhancement.
Policy recommendations
- Prioritize resolution of banking sector problems.
- Implement broader reforms to strengthen the regulatory framework to support a sound banking system.
- Keep fiscal policy responsive to changing economic circumstances in the near term.
- Enhance the transparency of the monetary policy framework.
Subject areas and keywords (as listed)
- Subject: Banking, Commercial banks, Distressed assets, Expenditure, Financial institutions, Financial sector policy and analysis, Fiscal policy, Loans, Nonperforming loans
- Keywords: Asia and Pacific, coalition, CR, Distressed assets, equity holding, firm, FSA official, Global, hi banks' self-assessments, ISCR, Loans, monetary policy, Nonperforming loans, restructuring plan, service provision, trust bank license