1998 Reports

The Japanese financial system: Restructuring for the future

Gyohten, Toyoo

"I was asked to talk today about the recent Japanese financial situation. As everyone is
aware, the cracks in Japan’s current financial stability have emerged from the market perception
that Japanese banks have been dangerously weakened by a huge amount of bad loans. There is
also the perception that neither the Japanese government nor the banks’ managers are taking
adequate measures to improve the situation, particularly against the background of Japan’s
deteriorating macroeconomic condition."