Regional Economics: Theory and Practice

Abstracting and Indexing

Referativny Zhurnal VINITI RAS
LCCN Permalink
Google Scholar

Online available



Cyberleninka (24 month OA embargo)

Regional banks of Japan: Milestones, specifics of government regulation and a role in economic development

Vol. 17, Iss. 11, NOVEMBER 2019

Received: 20 June 2016

Received in revised form: 25 July 2016

Accepted: 26 August 2016

Available online: 15 November 2019


JEL Classification: G21, G28, N25

Pages: 2196–2210

Plekhanov D.A. Institute for Complex Strategic Studies (ICSS), Moscow, Russian Federation

ORCID id: not available

Subject The article reviews the main stages of regional banks development and specifics of government regulation of the Japanese banking system from the second half of the 19th century to the present days.
Objectives The objective is to analyze the transformation of different forms of financial intermediation at the regional level and the contribution of regional banks to economic development of Japan.
Methods The study draws upon foreign historical surveys and economic studies on Japanese financial system development in general, and regional financial institutions in particular.
Results Regional banks in Japan were established based on international experience (Germany, United States, other Western countries) and traditional forms of financial intermediation of Japan. During the financial system reform, government authorities responsible for financial sector regulation and supervision recognized the role of regional banks in the economic system and supported them through certain measures of the national policy. Under liberalization of Japanese financial system, regional banks faced tough competition from larger financial institutions. However, the knowledge of local market specifics and long-term contacts with clients are an important competitive advantage, which allows regional banks to expand their services.
Conclusions The Japanese experience in financial system development speaks for the importance of government regulation in terms of support to regional financial institutions and the need for consideration of regional specifics and national traditions in the sphere of financial intermediation.

Keywords: regional bank, Japan, banking system


  1. Guinnane T.W. Delegated Monitors, Large and Small: Germany's Banking System, 1800–1914. Journal of Economic Literature, 2002, vol. 40, iss. 1, pp. 73–124.
  2. White E.N. The Regulation and Reform of the American Banking System, 1900–1929. Princeton, Princeton University Press, 1983. 268 p.
  3. Belaisch A., Kodres L., Levy J., Ubide A. Euro-Area Banking at Crossroads. IMF Working Paper, 2001, no. WP/01/28, 74 p.
  4. Li L. China's Silk Trade: Traditional Industry in the Modern World, 1842–1937. Harvard East Asian Monographs, Harvard University Press, 1981.
  5. Yamazawa I. Raw-Silk Exports and Japanese Economic Development. In: The Textile Industry and the Rise of the Japanese Economy (ed. by M. Smitka). New York, Garland, 1998.
  6. Nakabayashi M. The Rise of the Factory Industry: Silk Reeling in Suwa District. In: The Role of Tradition in Japan's Industrialization (M. Tanimoto, ed.). Japanese Studies in Economic and Social History. Volume 2. Oxford, Oxford University Press, 2006, 368 p.
  7. Miwa U., Ramseyer J.M. Japanese Industrial Finance at the Close of the 19th Century: Trade Credit and Financial Intermediation. Explorations in Economic History, 2006, no. 43, pp. 94–118. URL: Link
  8. Dekle R., Hamada K. On the Development of Rotating Credit Associations in Japan. Economic Development and Cultural Change, 2000, vol. 49, iss. 1, pp. 77–90. URL: Link
  9. Nakagawa S. A Role of Social Finance by a Cooperative: A Case Study of Green Coop Fukuoka, Japan. ACRN Journal of Finance and Risk Perspectives, Special Issue of Social and Sustainable Finance, 2015, vol. 4, iss. 3, pp. 1–18. URL: Link
  10. Moussa H., Obata J. Economic Development and Financial Structure in Japan, 1868–1927. URL: Link
  11. Okazaki T. Bank Behavior in Regional Finance and the Development of Regional Industries: The Case of Pre-War Fukushima, Japan. CIRJE Discussion Papers, 2015, no. CIRJE-F-972. URL: Link
  12. Okazaki T., Sawada M., Yokohama K. Measuring the Extent and Implications of Director Interlocking in the Pre-War Japanese Banking Industry. URL: Link
  13. Morck R.K., Nakamura M. A Frog in a Well Knows Nothing of the Ocean: A History of Corporate Ownership in Japan. URL: Link
  14. Fletcher W.M. Japanese Banks and National Economic Policy, 1920–1936. In: H. James, H. Lindgren, A. Teichova, eds. The Role of Banks in the Interwar Economy. Cambridge, Cambridge University Press, 1991, 292 p.
  15. Montgomery H., Takahashi Y. The Japanese Big Bang: The Effects of “Free, Fair and Global”. The Journal of Social Science, 2011, no. 72, pp. 49–71.
  16. Jones C.P.A. Japanese Banking Reform: A Legal Analysis of Recent Developments. Duke Journal of Comparative & International Law, 1993, vol. 3, iss. 2, pp. 387–440.
  17. Beason D., James J. The Political Economy of Japanese Financial Markets: Myths versus Reality. New York, Palgrave Macmillan, 1999, 304 p.
  18. Hosono K., Sakai K., Tsuru K. Consolidation of Cooperative Banks (Shinkin) in Japan: Motives and Consequences. RIETI Discussion Paper Series. URL: Link
  19. Patrick H. The Relevance of Japanese Finance and its Main Bank System. In: The Japanese Main Bank System: Its Relevance for Developing and Transforming Economies (ed. by M. Aoki, H. Patrick). Oxford University Press, 1995. URL: Link
  20. Horiuchi A. An Evaluation of Japanese Financial Liberalization: A Case Study of Corporate Bond Markets. In: Ito T., Krueger A.O. Financial Deregulation and Integration in East Asia, NBER-EASE. Volume 5. URL: Link
  21. Hoshi T. What Happened to Japanese Banks? Monetary and Economic Studies, 2001, vol. 19, iss. 1, pp. 1–29.
  22. Yamaguchi M. Participation of Japanese Regional Banks in International Syndicated Loans: Lending Behavior and Explanatory Factors. Review of Integrative Business & Economics Research, 2015, vol. 4, iss. 2, pp. 220–236.
  23. Ishikawa A., Tsuchiya S., Nishioka S. Financial Institutions' Efforts to Support the Business Conditions of Small and Medium-Sized Firms. URL: Link

View all articles of issue


ISSN 2311-8733 (Online)
ISSN 2073-1477 (Print)

Journal current issue

Vol. 18, Iss. 6
June 2020