1997 Reports
How the Japanese financial system and its main bank system have dealt with generic issues of financial development
The Japanese main bank system is one of very intensive relationships between a large
commercial bank – the main bank – and its large industrial and commercial borrowers. It involves
close monitoring by the bank of the company, gathering detailed information not otherwise available
on company plans and performance. In return for this intrusive activity by the bank, if the company
falls into financial distress the main bank has a special responsibility to rescue and restructure it if that
makes economic sense.. This system developed in the early period of great difficulty and uncertainty
following World War II, and developed and flourished up until the mid-1970s, the era of
exceptionally rapid economic growth, high rates of investment, and huge needs for business fixed
investment.
Geographic Areas
Files
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More About This Work
- Academic Units
- Center on Japanese Economy and Business
- Publisher
- Center on Japanese Economy and Business, Graduate School of Business, Columbia University
- Series
- Center on Japanese Economy and Business Occasional Papers, 33
- Published Here
- February 16, 2011