Banking system of Japan.

The essence of any banking system is the aggregate of various types of credit institutions and national banks. Each country has its own distinctive features, but many states have common signs of building banking systems. So, the banking system of Germany, Japan and the US are usually considered as different. Each of them has its own characteristics.

Japan's banking system, despite its youth in comparison with the US and European, is characterized by a rather high level of development. Banks here are assigned the role of an axial structure in all financial and industrial groups, in addition, they also unite around themselves some companies. The role of the state in regulating and controlling the banking sector is quite strong.

The banking system of Japan, which can be called modern, appeared after the Second World War. It is important to remember that it is built according to the American pattern. In Japan there are banks that can be safely attributed to the leading world banks. The most powerful financial and industrial groups, headed by Japanese banks, carry out huge financial investments in the countries of Asia, Western Europe, Australia, and the USA.

The banking system plays a big role in the market economy of this country. It is represented by two links. The first is the Central Bank, which includes a political council, 3 executive auditors, as well as 8 advisors and 3 executive directors. The second link is commercial banks, referring to regional banks, city banks, trust banks, branches of foreign banks and new types of banks. The central bank is also called the Bank of Japan, its status and functions were determined by law back in 1942. This law was subsequently modernized twice, the last - in 1998. By status, the Bank of Japan is a joint-stock company. It has a number of functions.

The first is the issue of banknotes. The Central Bank has an unlimited monopoly on the issue of banknotes. With the consent of the government, the Ministry of Finance establishes an issue. Previously, it forced the bank to keep reserves constantly. But the new legislation no longer puts forward such requirements for the formation of reserves, which allows the Central Bank to promote a balanced development of the Japanese economy by maintaining price stability.

The second function is the implementation of monetary policy. Every six months, the bank must report to the parliament, using the support of the Minister of Finance, about its monetary policy. But its development and implementation is independent of any institution, that is, the bank does it independently.

The third function is to ensure the smooth and efficient functioning of the entire settlement system between various credit institutions. The fourth function is the monitoring and verification of the financial condition and management position of all financial institutions. And the fifth function is the control over the credit sphere, as well as ensuring the absolutely uninterrupted functioning of the entire settlement and payment system by granting loans that are limited in terms of time to credit institutions.

Until the 90s, the country of the rising sun was a major world creditor. But then the banking system of Japan began to experience the first signs of a crisis. Over the course of the next twenty years, there were many problems associated with non-performing loans, the termination of performance of their obligations by some banks, the liquidity crisis. In addition, Japan's economy was hit hard by numerous, powerful natural disasters.

Having understood what the banking system of Japan is, one can safely say that the change in economic policy in this country has always been carried out cautiously and smoothly. And this experience deserves to be used.