Foreign bank lending and bond underwriting in Japan during the lost decade

During the 1980s, the Japanese financial markets grew dramatically in scale and importance and clearly established Tokyo as a world financial centre. Many foreign financial institutions began to establish or greatly expand their presence in these markets. This paper examines the subsequent path of foreign intermediation activity during the so-called ‘lost decade’ of Japan in the 1990s. We examine both lending activity by foreign commercial banks in Japan and underwriting activity in the international yen-denominated bond sectors by foreign firms during this period.