Can American finance become the global standard?

American-style finance has become the global standard in the 1990s. This model, which emphasizes value-driven markets and governance through institutional investors, has allowed US banks to re-emerge as a dominant force in international banking. This financial model, however, is not necessarily applicable to other countries such as Japan since it emphasizes profit maximization at the expense of customer relationships. The better way to restructure Japanese banks would be to flatten institutional hierarchies while keeping costs low and customer relationships strong.