The Japanese Banking Crisis of the 1990s: Sources and Lessons
47 Pages Posted: 30 Jan 2006
Date Written: January 2000
Abstract
For a large part of the past decade, Japan has witnessed a steady deterioration in the health of its banking system. This paper examines what went wrong and why it has taken so long for the system to recover. While the paper traces the roots of the crisis to accelerated deregulation and deepening of capital markets without an appropriate adjustment in the regulatory framework, it 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.
Keywords: Japan, Banking Crisis, Bank Restructuring
JEL Classification: G21, G32
Suggested Citation: Suggested Citation
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