Resumen de The interaction between financial regulation and financial crisis in Japan: change in financial administration and two financial crises from 1980 to 2010
This article traces the history of the development of the Japanese financial regulatory system and explains the interaction between financial regulation and financial crisis. In the 1980s, �distorted deregulation� caused an economic bubble;
financial deregulation was implemented on corporate finance, but the financial regulations on segmentation of financial services were not eased sufficiently. In the 1990s, the Ministry of Finance (MOF) hid the seriousness of a non-performing loans problem because financial deregulation was proceeding at a very slow pace and the MOF had a tight relationship with banks. It was not until 1997 that the financial crisis was perceived as serious, including by politicians. The MOF�s style of supervision and inspection of financial institutions was criticized, and more drastic financial liberalization was implemented. However, it was not until 2005 that the non-performing loans problem was finally resolved because then-Prime Minister Junichiro Koizumi, who insisted on advancing structural reforms despite a short-term economic downturn, made major banks accelerate their disposal of nonperforming loans. To resolve the problem, the Financial Services Agency (FSA) inspected major banks in an arbitrary and heavy-handed manner. Therefore, the style of financial supervision did not resemble the Anglo-Saxon model completely even after the crisis was overcome. In addition, financial innovation has developed rapidly in the U.S. and Europe since the 1990s; Japanese financial institutions had to deal with the financial system instability until 2004 and could not keep up with this progress. Ironically, this has kept them from undergoing great losses since the global financial crisis of 2007�2008. The global financial crisis has changed the style of financial supervision by the FSA.
