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associations, credit cooperatives, and labor credit associations collected individual deposits from general depositors. These deposits were then loaned to cooperative members and to the liquidity-starved city banks via the interbank money markets or were sent to central cooperative banks, which in turn loaned the funds to small businesses and corporations. More than 8,000 agricultural, forestry, and fishery cooperatives performed many of the same functions for the cooperatives. Many of their funds were transmitted to their central bank, the
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rely more on direct financing. The second development came in 1986 when the Tokyo exchange permitted non-Japanese brokerage firms to become members for the first time. By 1988 the exchange had sixteen foreign members. The Tokyo
Securities and Stock Exchange had 124 member companies in 1990. In 1990, five types of securities were traded on the Tokyo exchange: stocks, bonds, investment trusts, rights, and warrants alone.
272:
Insurance companies' assets grew at a rate of more than 20% per year in the late 1980s, reaching nearly US$ 694 billion in 1988. The life insurance companies moved heavily into foreign investments as deregulation allowed them to do so and as their resources increased through the spread of fully funded pension funds. These assets permitted the companies to become major players in international money markets.
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304:(Japan Economic Daily), grew from 6,850 in October 1982 to nearly 39,000 in early 1990. During one six-month period in 1986, total trade volume on the Tokyo exchange increased by 250% with wild swings in the Nikkei. After the plunge of the New York Stock Exchange in October 1987, the Tokyo average dropped by 15%, but there was a sharp recovery by early 1988. This was the height of the
131:, took care of most of the government's foreign-exchange needs and functioned as the nation's foreign-banking representative. Long-term credit banks were intended to complement rather than to compete with the commercial banks. Authorized to issue debentures rather than take ordinary deposits, they specialized in long-term lending to major
206:(JBIC) is the only government institution with an international focus. This bank provides financing for trade between Japan and developing countries, performing the function of export-import banks run by governments in other countries (including the United States), although its participation is possibly greater.
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market. The second tier of securities firms contained ten medium-sized firms. The third tier consisted of all the smaller securities firms registered in Japan. Many of these smaller firms were affiliates of the Big Four, while some were affiliated with banks. In 1986 eighty-three of the smaller firms
146:
In 1990, the five largest banks in the world, measured by total assets, were
Japanese banks. These banks opened branches abroad, acquired existing foreign banks, and became engaged in new activities, such as underwriting Euro-yen bond issues. The investment houses also increased overseas activities,
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Japan's securities markets increased their volume of dealings rapidly during the late 1980s, led by Japan's rapidly expanding securities firms. There were three categories of securities companies in Japan, the first consisting of the "Big Four" securities houses (among the six largest such firms in
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Two developments in the late 1980s helped in the rapid expansion of the Tokyo
Securities and Stock Exchange. The first was a change in the financing of company operations. Traditionally large firms obtained funding through bank loans rather than capital markets, but in the late 1980s they began to
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ranked third after those of Tokyo and New York. Although there are eight stock exchanges in Japan, the Tokyo
Securities and Stock Exchange represented 83% of the nation's total equity in 1988. Of the 1,848 publicly traded domestic companies in Japan at the end of 1986, about 80% were listed on the
126:
In the early postwar financial system, city banks provided short-term loans to major domestic corporations while regional banks took deposits and extended loans to medium-sized and small businesses. Neither engaged much in international business. In the 1950s and 1960s, a specialized bank, the
271:
Japanese insurance companies became important leaders in international finance in the late 1980s. More than 90% of the population owned life insurance and the amount held per person was at least 50% greater than in the United States. Many
Japanese used insurance companies as savings vehicles.
122:
Japan's traditional banking system was segmented into clearly defined components in the late 1980s: commercial banks (thirteen major and sixty-four smaller regional banks), long-term credit banks (seven), trust banks (seven), mutual loan and savings banks (sixty-nine), and various specialized
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Trust banks were authorized to conduct retail and trust banking and often combined the work of commercial and long-term credit banks. Trust banks not only managed portfolios but also raised funds through the sale of negotiable loan trust certificates. Mutual loan and savings banks, credit
147:
especially participating in the United States
Treasury bond market (where as much as 25 to 30% of each new issue was purchased by Japanese investors in the late 1980s). As of March 1989, the five largest city banks in Japan (in order of total fund volume) were
123:
financial institutions. During the 1980s, a rapidly growing group of nonbank operationsâsuch as consumer loan, credit card, leasing, and real estate organizationsâbegan performing some of the traditional functions of banks, such as the issuing of loans.
195:. The postal savings system, through the 24,000 post offices, accepted funds in various forms, including savings, annuities, and insurance. The post offices offered the highest interest rates for regular savings accounts (8% for
268:, and dealing. Other services included the administration of trusts. In the late 1980s, a number of foreign securities firms, including Salomon Brothers and Merrill Lynch, became players in Japan's financial world.
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The Tokyo
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Japan's stock market dealings exploded in the 1980s, with increased trading volume and rapidly rising stock prices. The trading recorded by the
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in 1990) and tax-free savings until 1988, thereby collecting more deposits and accounts than any other institution in the world.
235:. Nomura was the world's largest single securities firm; its net capital, in excess of US$ 10 billion in 1986, exceeded that of
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231:. The Big Four played a key role in international financial transactions and were members of the
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Yamamura, Kozo. "The Role of the
Samurai in the Development of Modern Banking in Japan."
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A group of government financial institutions paralleled the private banking sector. The
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Please help update this article to reflect recent events or newly available information.
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are much the same as those of other major industrialized nations: a commercial
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companies, which provide brokerage services, underwrite corporate and
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combined. In 1986, Nomura became the first
Japanese member of the
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Ministry of Land, Infrastructure, Transport and
Tourism
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Foreign commerce and shipping of the Empire of Japan
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International Banking in the 19th and 20th Centuries
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251:. Nomura and Daiwa were primary dealers in the
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102:securities, and deal in securities markets;
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63:Overview of the Japanese financial system
689:Simultaneous recruiting of new graduates
204:Japan Bank for International Cooperation
633:Ministry of Economy, Trade and Industry
896:Government-business relations in Japan
289:Tokyo Securities and Stock Exchange.
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735:List of Japan natural gas companies
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300:stock average, compiled by the
191:system and deposited with the
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776:Prefectures by GDP per capita
518:Banknotes of the Japanese yen
349:(Taylor & Francis, 1999).
338:A history of banking in Japan
274:Nippon Life Insurance Company
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891:Economic relations of Japan
669:Japanese management culture
585:Financial services in Japan
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441:Japanese economic miracle
421:Economic history of Japan
110:with a tool to implement
40:This article needs to be
901:List of exports of Japan
533:National Printing Bureau
345:Tsutsui, William M. ed.
185:Housing Loan Corporation
177:Japan Export-Import Bank
68:Japan's financial system
233:New York Stock Exchange
171:Government institutions
906:National debt of Japan
580:Capital flows in Japan
181:Japan Development Bank
74:system, which accepts
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356:27.2 (1967): 198-220.
249:London Stock Exchange
66:The main elements of
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575:Tokyo Stock Exchange
436:Income Doubling Plan
330:(St Martin's, 1983)
302:Nihon Keizai Shimbun
286:Osaka Stock Exchange
256:were members of the
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664:Japanese labour law
643:National Tax Agency
638:Ministry of Finance
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371:Library of Congress
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340:(Routledge, 2013).
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165:Sanwa Bank
100:government
96:securities
84:businesses
78:, extends
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369:from the
157:Fuji Bank
52:July 2011
785:Industry
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506:Currency
497:Taxation
466:Keiretsu
461:Zaibatsu
229:Yamaichi
133:keiretsu
76:deposits
849:Whaling
814:Defense
557:finance
553:Banking
414:History
72:banking
42:updated
829:Mining
713:Energy
475:Policy
332:online
262:equity
243:, and
227:, and
217:Nomura
163:, and
135:(çł»ć).
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