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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.
261:
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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293:(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
120:, 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
195:(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
135:
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,
203:
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
281:
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
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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
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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.
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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
136:
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
112:
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.
184:. 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
257:, 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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95:, which offer the means to finance public and private debt and to sell residual corporate ownership; and money markets, which offer banks a source of liquidity and provide the
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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.
224:. 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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220:. 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."
79:; specialized government-owned financial institutions, which fund various sectors of the
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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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240:. Nomura and Daiwa were primary dealers in the
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91:securities, and deal in securities markets;
859:Japan Automobile Manufacturers Association
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854:Japan Association of Corporate Executives
52:Overview of the Japanese financial system
678:Simultaneous recruiting of new graduates
193:Japan Bank for International Cooperation
622:Ministry of Economy, Trade and Industry
885:Government-business relations in Japan
278:Tokyo Securities and Stock Exchange.
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724:List of Japan natural gas companies
471:Monetary and fiscal policy of Japan
247:Tokyo Securities and Stock Exchange
781:Agriculture, forestry, and fishing
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612:Japan External Trade Organization
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734:List of power stations in Japan
445:JapanâSouth Korea trade dispute
289:stock average, compiled by the
180:system and deposited with the
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765:Prefectures by GDP per capita
507:Banknotes of the Japanese yen
338:(Taylor & Francis, 1999).
327:A history of banking in Japan
263:Nippon Life Insurance Company
915:Standard of living in Japan
880:Economic relations of Japan
658:Japanese management culture
574:Financial services in Japan
435:Japanese asset price bubble
343:Journal of Economic History
295:Japanese asset price bubble
242:United States Treasury bond
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864:Japan Business Federation
755:List of largest companies
663:Japanese work environment
607:Financial Services Agency
597:Development Bank of Japan
579:Japanese financial system
532:Scrip of Edo period Japan
430:Japanese economic miracle
410:Economic history of Japan
99:with a tool to implement
29:This article needs to be
890:List of exports of Japan
522:National Printing Bureau
334:Tsutsui, William M. ed.
174:Housing Loan Corporation
166:Japan Export-Import Bank
57:Japan's financial system
222:New York Stock Exchange
160:Government institutions
895:National debt of Japan
569:Capital flows in Japan
170:Japan Development Bank
63:system, which accepts
602:Fair Trade Commission
481:Trade policy of Japan
345:27.2 (1967): 198-220.
238:London Stock Exchange
55:The main elements of
714:Solar power in Japan
564:Tokyo Stock Exchange
425:Income Doubling Plan
319:(St Martin's, 1983)
291:Nihon Keizai Shimbun
275:Osaka Stock Exchange
245:were members of the
138:Dai-Ichi Kangyo Bank
828:Public corporations
653:Japanese labour law
632:National Tax Agency
627:Ministry of Finance
589:Government agencies
360:Library of Congress
823:Private enterprise
760:Prefectures by GDP
329:(Routledge, 2013).
315:Born, Karl Erich.
253:and bond trading,
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668:Labor market
646:Labor market
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517:Japanese yen
440:Lost Decades
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808:Electronics
299:lost decade
935:Categories
786:Automotive
554:Nikkei 225
512:Japan Mint
305:References
287:Nikkei 225
199:Securities
154:Sanwa Bank
89:government
85:securities
73:businesses
67:, extends
920:Amakudari
910:Nemawashi
833:Transport
693:Salaryman
358:from the
146:Fuji Bank
41:July 2011
774:Industry
743:Rankings
495:Currency
486:Taxation
455:Keiretsu
450:Zaibatsu
218:Yamaichi
122:keiretsu
65:deposits
838:Whaling
803:Defense
546:finance
542:Banking
403:History
61:banking
31:updated
818:Mining
702:Energy
464:Policy
321:online
251:equity
232:, and
216:, and
206:Nomura
152:, and
124:(çł»ć).
214:Nikko
210:Daiwa
107:Banks
69:loans
544:and
191:The
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83:;
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