The banking system of Japan

23.09.2015 Uncategorized

The emergence of the first banks in Japan belongs to the XVII century, due to the need to service the banking capital of a developing Commerce, industry and agriculture. In 1617 in Osaka were first issued paper money backed by silver and is formed by the Association of bankers which guaranteed the security of banknotes.
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By the mid-nineteenth century increased the openness of Japan to foreign influence and economic restructuring of the country in the Meiji period (1868-1912) produced a rapid development of the banking system, which was the active impact of the state. In this period, organized the largest banking institutions specializing in certain types of loans. In 1880 was established the Bank of Yokohama gold and silver. In 1882 began operating the Bank of Japan. To Finance the construction of new industrial enterprises in 1990 was organized by the Industrial Bank and financing for agriculture – a long-term credit Bank and Agricultural cooperative Bank. At the same time was the formation of a network of commercial banks. Adopted the law on banks.

The peculiarity of the development of the banking system of Japan in the nineteenth century was that it was not as a basis for the development of the industrialization of the country (as was, for example, in the UK), but as a Supplement to it.

After the Second world war, the country has embarked on the creation of small banks operating across the country, as well as the education of local banks on the principle of “one Prefecture one Bank”. These two types of banks were to Finance across countries and regions. To prevent unemployment, maintain the activity of small and medium enterprises were established credit cooperatives and trust funds. With the recovery of the national economy and for export promotion were created by private financial institutions to provide loans for long term credit banks and specialized. Unlike some developed countries, such as France, in Japan in the postwar period, the main financial levers were in the hands of private banks. However, the degree of state control over their activities remained very high.

In parallel with private banks was recreated the extensive network of government institutions. For lending to foreign trade in 1950 was based Export Bank, the main function of which at this stage was loans for Japanese exports of the shipbuilding and engineering. The Bank’s capital belongs to the state, and the control over its activities exercised by the Ministry of Finance.

In 1951 was established the Japan development Bank, transferring funds and functions of the Bank financing and the recovery of the Equivalent Fund in effect from 1949 to credit the proceeds from the sale of goods received in aid from the US. The Bank is committed to preferential (for periods of less than 1 year) lending to sectors of the economy, in loans which private banks are not interested.

The peculiarity of the development of the banking system of Japan in the postwar period — the formation of financial-industrial groups. The head of each of them is a large private commercial Bank, and around it are grouped an industrial company. The banks bore the main burden of financing rapid industrial development of Japan. Within the groups formed stable relations, based on relations of partners.

Currently in Japan, there are six main financial-industrial groups, the core of which are the largest city banks – Mitsui, Mitsubishi, Sumitomo, Fuji, “Daiichi Kant”, “Sanva”. The banking system of Japan consists of the national private banks, credit associations, governmental financial institutions and branches of foreign banks.