1. The fallen samurai?
- Author
-
Baker, Gerard
- Subjects
Banking industry -- Analysis ,Banking, finance and accounting industries ,Business - Abstract
Japanese banking is still mired in crisis. Although Bank of Tokyo-Mitsubishi and other large banks seem to be coming out the bad debt crisis that has ravaged Japan during the early 1990s, there are indications that the problems will not go away anytime soon. The Japanese banking sector is in a quagmire not because of individual managerial incompetence although this is still ingrained in the system. The problems are actually rooted in systemic weakness, with banks being over-regulated, under-capitalized and over-stretched. Therefore, although the worst asset quality crisis in Japan may be already dissipating, the features of the system that generated it remain entrenched. Banks and regulators are showing no sign of addressing them, thereby guaranteeing an unhealthy banking sector for an indefinite period.
- Published
- 1996