Japanese Banks in Deregulation and the Economic Bubble

The major trend of Japanese banking in the 1970s is represented by the shift of “rights,” or attractive portions, of financial business from commercial banks to trust and long-term financial institutions and securities companies. The city banks, however, became more and more frustrated as their power to control declined. Very strict regulations governed the city banks which did not allow them to join in this shift of “rights” or to function as main banks.