Japanese central bank. See what the "Bank of Japan" is in other dictionaries

In Japan, as in most European countries (France, Croatia, Czech Republic, Montenegro, Austria, Great Britain, Spain, Germany, Greece, Bulgaria, Italy, Poland, Switzerland) and Asia (Indonesia, Malaysia, Philippines, Iran, China, Australia, Israel, India, Thailand, Singapore, Vietnam), there is one central bank and a certain number of regional banks.

Bank of Japan - the national bank of Japan, was founded in 1882. In 1885, he began issuing banknotes that could be exchanged for silver. Since 1897, the country has passed the gold coins and yen issuing bank, received the status of legal tender in Japan. Since 1942, the bank has been controlled by the government of the country, and the Japanese Minister of Finance has the right to autonomously change the by-laws of the national bank. And only since 1998, the National Bank of Japan gained independence from the Ministry of Finance.

The Central Bank of Japan is a joint-stock company in which 55% of the assets are at the disposal of the Government, the remaining 45% - with financial institutions, insurance companies and other private shareholders. The percentage of dividends for shareholders is 4%, and sometimes increased to 5% - in cases where the bank receives significant profits. The bank gives the bulk of its profits to the state budget treasury.

The functional responsibilities of the bank include: the issuance of money, the implementation of monetary regulation, the implementation of mutual settlements between commercial banks, the control and conduct of operations in the government securities market, participation in the international activities of the country, as well as the implementation of economic and theoretical research.

Mitsubishi UFJ Financial Group is the largest Japanese and world banking group with total assets of 204 trillion. yen. Among Japanese banks, it has the most developed network of foreign branches and representative offices. MUFG operates in approximately 50 countries around the world. MUFG provides a huge range of financial services: servicing commercial and retail clients, trust management of clients' assets, operations in the securities market, issuance of credit cards, leasing, consumer lending and much more.

The financial group was formed in October 2005 as a result of the merger of Japanese conglomerates - Mitsubishi Tokyo Financial Group and UFJ Holdings. The shares of the banking group are traded on the world stock exchanges (MICEX, RTS, SP 500) in New York, Beijing and Tokyo.

Mitsubishi UFJ Financial Group includes five Japanese companies, as well as the American financial holding company UnionBanCal Corporation.

Sumitomo Mitsui Financial Group - founded in 2001, as a result of the merger of Sakura Bank and Sumitomo Bank. One of the most important financial groups in the country, acts as a holding company for the second Japanese bank in terms of capitalization - Sumitomo Mitsui Banking. SMFG is engaged in retail, corporate and investment operations, financial operations with securities, client asset management, lending to individuals and legal entities. The bank has a network of branches, which consists of 450 regional branches and 20 foreign ones. Sumitomo Mitsui Financial Group includes both national divisions (The Japan Research Institute, Sumitomo Mitsui Banking Corporation, SMBC Friend Securities, SMBC Leasing Company) and the California-based Manufacturers Bank.

Mizuho Financial Group ranks third among Japanese banking financial groups, behind only Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group. MHFG consists of two divisions - Mizuho Bank and Mizuho Corporate Bank.

The activity of the financial group originates in 1999, after the merger of Dai-Ichi Kangyo Bank with Fuji Bank and Industrial Bank of Japan.

Mizuho became the first Japanese bank with assets of one trillion dollars - and this is reflected in its name, Mizuho - translated from Japanese means Golden Rice Ears. By the end of 2009, the bank had assets of more than 1.5 trillion. dollars. Its shares are traded on the New York, Osaka and Tokyo stock exchanges.

Mizuho Financial Group consists of divisions - Mizuho Bank, Mizuho Corporate Bank. Mizuho Securities, Mizuho Trust & Banking, which operate in various directions. The main ones are: the provision of services to individuals, small and medium-sized businesses and local governments, the provision of financial services for large Japanese organizations, financial institutions of national and foreign origin, the implementation of brokerage (forex broker rating, ECN Forex) services, the execution of consulting and trust services.

Mizuho Bank serves 25 million individuals and more than 90 thousand organizations, has 500 branches and 11 thousand ATMs.

Bank of Nagoya is a regional bank of Japan, founded in 1949 and has about 100 branches in major cities in Japan and China. Primarily engaged in servicing businesses and individuals. The Bank provides a line of deposits and loans, leasing services, carries out operations with securities.

Bank of Saga Ltd. - a regional bank with 110 branches, which are located in the prefecture of Saga (65 branches), Fukuoka (40 branches), Nagasaki and Tokyo - the remaining 5 branches. Serves both corporate clients and individuals.

Bank of Yokohama was founded in 1920. The main location of the bank is Kanagawa Prefecture, as well as the south of the Tokyo metropolitan area. Bank of Yokohama has 200 regional branches, almost 400 ATMs and several overseas branches in New York, London, Hong Kong and more than 4,600 employees. The total amount of assets is approaching the mark of 13 trillion. yen.

Japan Bank for International Cooperation is a "young" bank that began its existence in 1999 as a result of the merger of the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund. It operates in 18 countries and belongs to the international division of Japan Finance Corporation.

Nanto Bank - founded in 1934 and has 135 regional branches under its control. The bank provides standard operations for individuals and legal entities. The bank's representative offices are located in many prefectures - Kyoto, Wakayama, Hyogo, Osaka, as well as in Hong Kong, Tokyo and Shanghai.

The banking system of Japan is one of the most developed financial systems in the world, and Japanese banks are ahead of the financial institutions of the Baltics (Estonia, Latvia, Lithuania and Finland), the Caucasus (Abkhazia, Armenia, South Ossetia, Azerbaijan, Georgia), Africa (Tunisia, Egypt, Libya), Turkey and some countries of the former USSR (Moldova, Kazakhstan, Tajikistan, Uzbekistan, Kyrgyzstan, Belarus and Ukraine).

Not a novelty for clients of banks around the world (Belarusian, Russian (Sberbank, Alfa Bank, VTB Bank), European, Ukrainian, as well as US and Swiss banks) is the possibility of financial transactions through electronic payment systems (Yandex money, Webmoney, Qiwi, PayPal). With their help, you can carry out all financial transactions, from paying for a visa to buying tickets for concerts of show business stars (Philip Kirkorov, Nikolai Baskov, Alla Pugacheva, Anastasia Volochkova, Ani Lorak, Kristina Orbakaite, Ksenia Sobchak).

Japanese banks take part in options trading, trading in a variety of futures, such as: gold, silver, oil, gasoline, gas, coffee, wheat, cotton, sugar and other commodities (the world's most expensive cars, yachts, phones, dogs and diamonds).

Japanese banks have their branches in many countries - the USA, Canada, Mexico, Cuba, Brazil, Dominican Republic, EU countries, as well as in Russia (Moscow, St. Petersburg, Dagestan RF, Ingushetia, Chechnya RF, North Ossetia), allowing their customers to use bank services outside the country for tourism while traveling. Also, customers purchase real estate and cars (Toyota, Mazda, Hyundai-Kia, Nissan, Ford, Chevrolet, Volkswagen, Mercedes, Opel, Renault, Audi, BMW, VAZ, UAZ) using bank cards.

Japan's monetary unit is the Japanese yen, it is also the world's main reserve currency after the US dollar and the euro. The exchange rate of the Japanese currency (like many others - the pound exchange rate, the Swiss franc exchange rate, the Australian dollar exchange rate, the Singapore dollar exchange rate, the Canadian dollar exchange rate, the New Zealand dollar exchange rate, the yuan exchange rate, the Russian ruble exchange rate, the Belarusian ruble exchange rate, the hryvnia exchange rate, the tenge exchange rate, the Lithuanian litas exchange rate) are printed daily on the pages of the world (The Guardian, The Financial Times, The New York Times, Forbes) and Russian media.

Encyclopedic YouTube

1 / 1

FOREX forecast after the meeting of the Fed, the Bank of England and the Bank of Japan

Subtitles

Story

In 1873, on the basis of the National Banking Law, which almost copied the American law of 1863, national banks were established in Japan. Until 1876, the ability of banks to finance industry and trade was limited due to insufficient metal coverage of banknotes issued by banks. In 1876, banks received the right to issue banknotes against government bonds, as a result of which the number of banks in the country increased dramatically, and at the end of the 1870s there were already 151 banks in Japan.

The rapid growth of banks and uncontrolled issuance led to an increase in inflation. In order to prevent the collapse of the economy, the Bank of Japan was established in 1882. The bank was founded for a period of 30 years and its main purpose was to reduce inflation.

Since 1885, the bank began to issue banknotes exchanged for silver. The law of 1889 established the rules for issuing banknotes. Henceforth, banknotes issued by the Bank of Japan into circulation were required to be 100% silver plated, except for an uncovered limit of 70 million yen; in 1897 the uncovered limit was increased to 85 million yen, and in 1899 to 120 million yen. The bank could issue additional banknotes in excess of the established limit only with the permission of the Minister of Finance. In this case, he was obliged to pay an issue tax (not less than 5%), the rate of which in each individual case was set by the head of the Japanese Ministry of Finance.

In 1897, Japan switched to a system of gold monometallism, which was facilitated by the indemnity received by Japan from China under the Shimonoseki Treaty. Banknotes could only be issued by the Bank of Japan and, at the request of their holders, exchanged for gold at their cash desks. The yen issued by the bank became legal tender throughout the country. The Bank of Japan paid a monthly tax of 1.25% per annum on issued banknotes. Since December 1931, the exchange of banknotes of the Bank of Japan for gold was stopped.

Subsequently, the term of the bank's operation was extended for another 30 years, and in 1942 a law was passed, according to which the Bank of Japan became controlled by the government. The Minister of Finance of Japan received the right to independently change the by-laws of the bank. In 1949, the Political Council was created, which began to determine the interests of the state in the field of monetary regulation. In 1979, the Banking Law was modernized and the central bank received perpetual status. On April 1, 1998, a new Law on the Bank of Japan came into force, according to which the bank became independent from the Ministry of Finance.

Functions

The Bank of Japan performs the following functions:

• implementation of monetary policy (changes in the norm of required reserves, operations in financial markets, regulation of the accounting rate of interest);
• implementation of mutual settlements of commercial banks;
• monitoring and checking the financial position and the state of the management of financial institutions;
• conducting transactions with government

The Bank of Japan (BoJ) is the Central Bank of Japan, created to regulate the exchange rate of the yen, as well as to conduct and control the country's monetary and financial policy.

The Japanese banking system was formed in 1873 on the basis of the "National Banking Law" by analogy with a similar law that was passed in the United States in 1863. By 1870, the Japanese banking system included more than 150 banks.

The rapid growth of banks and the lack of control over the issue have caused a high level. In order to avoid a crisis in the economy, the Bank of Japan was established in 1882.

Structure and tasks of the Bank of Japan

The functions of the supreme governing body of the Bank of Japan are entrusted to the Policy Committee, which dates back to 1949. The exclusive prerogative of the Committee is to determine the level of the discount rate, loan interest rate, establish and amend the list of bills, credit terms and other key issues in the framework of the bank's activities.

The policy-making committee consists of seven members. It is headed by the President of the Bank of Japan. One representative each from the Ministry of Finance and the Department of Economic Government, who do not have the right to vote. The vote is taken by the head of the Bank of Japan and four other members of the Committee, who are appointed from among the most influential representatives of the Japanese business community, approved by Parliament and approved by the Cabinet of Ministers.

The real policy of the regulator is formed at the meetings of the Board of Governors, which take place daily. The Board of Governors includes the President and Vice President of the Bank of Japan, who are appointed by the Cabinet for five years, and seven Governors, who are appointed by the Minister of Finance on the basis of the proposal of the Governor of the Bank of Japan. Their term of office is four years. Six of these managers are career employees of the bank, the seventh member of the Board is a representative of the Ministry of Finance.

The magazine website notes that the Bank of Japan is a joint-stock company, 55% of which is owned by the Japanese government, and 45% is owned by financial institutions, insurance companies and private shareholders.

The competence of the Bank of Japan solves three main tasks. The first task is the formation of the exchange rate, by changing the volume of the money supply in circulation, as well as the stability of the value of the yen both inside and outside the country. The second task is to influence the circulation of money by setting the size of the interest rate and some other measures. And finally, the third task is to support the credit system.

Bank of Japan building, Tokyo

The Central Bank of Japan v. the Ministry of Finance

It's no secret that in any state, the Central Banks are forced to resist the constant pressure of politicians of all stripes and ranks who are trying to benefit from the state's financial system.

Until recently, the Bank of Japan had very complicated relations in this regard with the Ministry of Finance. According to the "Bank of Japan Law", its activities are aimed at "exclusively the performance of tasks pursuing public purposes", and employees of the bank are equated with civil servants. In accordance with the same law, the head of the Ministry of Finance has the right to control the activities of the Bank of Japan, as well as to give administrative orders to the leadership of the regulator. The Minister of Finance also appoints an administrator who oversees the activities of the Bank of Japan. Without the permission of the Ministry of Finance, the Bank of Japan has no right to establish additional branches, make transactions with financial and credit organizations of other states, approve articles of the annual budget and a number of other issues.

In the history of the Bank of Japan, there are enough examples of how, despite the strongest pressure from influential politicians and government agencies, the presidents of the Bank of Japan adhered to those methods of maintaining price stability that they considered the only true ones. Naturally, all this was the result of not only absolute confidence in their actions, but the high level of professionalism of the heads of the regulator and the rule worked out over the years: "Regulation of monetary circulation is the exclusive prerogative of the Bank of Japan."

Bank of Japan Governor Haruhiko Kuroda

The latest such head is Masaaki Shirakawa, who served as the Bank of Japan from 2008 to 2013 and is known for his opposition to the policies of Prime Minister Shinzo Abe's government. Shirakawa's successor Haruhiko Kuroda, who is a protege of Shinzo Abe, currently determines the policy of the regulator in line with and in full accordance with the instructions of the government.

On the site of the magazine site you can familiarize yourself with immediately after their release.

Useful links about the Bank of Japan

• Official website of the Bank of Japan:

The first banks of the modern type appeared in Japan after 1872 as private "national banks". As commercial banks, they had branches throughout the country and had the right to issue banknotes. Then there were about 150 such banks. "National banks" intensively issued non-convertible banknotes and thereby contributed to the growth of inflation, which hampered the development of productive forces. Under these conditions, there was an urgent need to create a central bank of Japan, which was founded in 1882 for a period of 30 years (then the period was extended for another 30 years). This bank received the monopoly right to issue banknotes, and the previously existing "national banks" were to stop issuing banknotes and gradually withdraw banknotes in circulation.

Prior to April 1, 1998, the Bank of Japan acted on the basis of the Bank of Japan Law of 1942, as amended in 1947 and 1949. In 1979, the law was somewhat modernized: it was the end of term appointments for the central bank, it received an indefinite status. On April 1, 1998, the new Bank of Japan Law came into force.

The authorized capital of the bank is 100 million yen and is 55% owned by the state, and 45% by individuals, financial institutions, insurance companies and other private shareholders. Shareholders are guaranteed dividends of 4%, which, if the bank receives very high profits, can be increased to 5%. The rest of the bank's profit goes to the state budget.

The main tasks of the bank are to regulate:

monetary circulation;

the exchange rate of the national currency - the yen, which is achieved by maintaining the optimal value of the money supply in circulation and the exchange rate of the yen in international currency markets;

credit system, maintaining its stability.

Since 1957, Japan has had a reserve requirement system, according to which credit institutions are required to place a certain amount of reserve deposits with the Bank of Japan. Maintaining liquidity in the national banking system is provided by refinancing from the Bank of Japan. Through the use of the system of refinancing and regulation of interest rates, the Bank of Japan controls the country's financial system.

Unlike the Central Bank of Germany and the US reserve banks, the Bank of Japan occupied a pronounced subordinate position in relation to the Ministry of Finance for a long time. And this is not accidental, since the law defining the location of the bank in the state hierarchy was adopted a year after the outbreak of the Pacific War in 1941. Over the past half century, the Bank of Japan has repeatedly tried to gain more independence from the government and, in particular, the Ministry of Finance, but until 1997 this did not find a government response. The dominant position of the Ministry over the Central Bank is clearly illustrated by the fact that the Minister of Finance had the right to independently change the by-laws of the bank, if this, in his opinion, was required for the proper performance of the tasks of the Central Bank. However, in practice, disagreements between the Ministry of Finance were usually resolved in a working order, which was also facilitated by the representation of the government in the Political Council of the Bank of Japan.

The financial activity of the Central Bank as an institution was strictly regulated by the government. The Bank of Japan has been one of the few central banks without fiscal autonomy. He made expenses within the limits of the estimate drawn up in accordance with the instructions of the Minister of Finance and approved by him.

The dependence of the bank was also manifested in the existing procedure for appointing senior officials: the manager and his first deputy - by the Cabinet of Ministers for a period of 5 years, and the voting members of the Political Council - by the government with the consent of both houses of parliament for a period of 4 years (if it is impossible to dismiss this position without their own consent, except for extraordinary circumstances). The governor and his first deputy could be removed by the cabinet of ministers, and other senior officials simply by the minister of finance, if they violated the laws, disobeyed the orders of the minister, or even if it was necessary to fulfill the tasks facing the Bank of Japan.

The internal audit of the Bank of Japan was carried out by senior officials of the bank. External oversight of the bank's operations and compliance with the budget was carried out by the government through a high-ranking official of the Ministry of Finance appointed by the Minister of Finance to the Bank of Japan Comptroller. The Minister of Finance could also demand from the Central Bank a report on its operations and property, check the state of affairs of the Bank, oblige by order to take measures that the Minister deems necessary, based on his supervisory functions.

At the same time, the end of the 1980s and 1990s was characterized by a global trend of expanding the independence of central banks. Therefore, the existing excessively subordinate position of the Bank of Japan became the subject of serious discussion. The 1942 law did not leave the Central Bank any autonomy in the field of monetary policy, which was under the direct control of the Ministry of Finance. Therefore, the best argument in favor of the Bank of Japan becoming more independent was the ever-deteriorating state of public finances. In 1996, Japan's domestic debt-to-GDP ratio approached 95%, up from 63% in 1991. In 1997, a group of advisers to the country's prime minister, influenced by the global trend towards greater independence for central banks, proposed revising the more than half-century-old law on the Central Bank. The government was recommended to give up the right to give instructions to the Central Bank on certain current operations. It was also proposed to deprive the government of the right to dismiss senior managers of the Central Bank, including the manager, in case of a divergence of their views from the opinion of the government.

In addition, the issue of transferring to the Bank of Japan from the Ministry of Finance broader powers in the field of supervision over the activities of banks, which were distributed between the Bank of Japan and the Ministry of Finance to the detriment of the former, was submitted for consideration. Unlike the Ministry of Finance, the Central Bank could not prescribe anything to banks; he could only ask them. Supporters of granting greater powers to the Central Bank justified their proposal by saying that the Bank of Japan would be better able to cope with supervisory responsibilities than the Ministry of Finance, since it would interfere less in the routine work of banks and be less inclined to bail out insolvent banks if the situation does not threaten a systemic crisis. The result of such comprehensive pressure was the development and adoption of a new Law on the Bank of Japan, which significantly strengthened its independence in relation to the Ministry of Finance.

The Bank of Japan is headed by a governor. As a rule, he is also elected as the chairman of the Bank's Political Council, which is its highest governing body. In addition to the Governor, the Council until April 1, 1998 included four voting members appointed by the government for a term of up to 4 years (representing local, national, industrial and commercial and agricultural banks) and 2 non-voting members (representatives of the Ministry of Finance and the Economic Planning Agency). According to the new Law on the Bank of Japan, the number of members of the Political Council has been increased from 7 to 9. Along with the Governor of the Central Bank and his two deputies, six more highly qualified experts in various fields not working in the Bank of Japan have become members. From now on, members of the government are not included in the Political Council of the Central Bank, however, they can take part in its meetings with the right of an advisory vote.

The functions of the Political Council include resolving various issues related to the activities of the Bank of Japan, as well as the regulation of money circulation and the credit system, the prerogative of changing the level of interest rates and on issues of debt obligations sold on the open market. However, in practice, the Political Council sets only the general parameters of such transactions (i.e. classes of bonds and treasury bills, categories of admitted financial institutions, methods of setting interest rates) and delegates authority to the Credit and Market Management Department of the Bank of Japan for operational market management (selection of instruments, interest rates and terms).

The most powerful instrument of monetary policy - reserve requirements cannot be changed only by the decision of the governing bodies of the bank, but require prior approval by the country's finance minister, and the fact of the change must be published in the government gazette before it comes into force.

In connection with the entry into force of the new law, the Bank of Japan changed the procedure for the work of the Political Council from January 1, 1998. The regular meetings of the Council and the publication of their minutes are recognized as a decisive factor in increasing transparency and strengthening confidence in the policy of the Central Bank. Now the meetings of the Monetary Policy Council are held on the 10th and 25th of each month with the consideration of the main operations of the Central Bank on the open market, changes in basic interest rates and minimum reserve requirements. All Council decisions are published immediately after the meeting.

Two days after the first meeting of the month, the Monthly Economic and Financial Report is released. A month after each meeting, an abbreviated version of the protocol is published, and after some time - the full text. Twice a week meetings of the Board of Directors are also held on other issues, such as the state of the financial system, payment turnover, and the organization of the work of the central bank.

The main working collective body of the bank is the executive committee, also headed by the manager. It consists of the First Deputy and Deputy Governor of External Relations and at least three executive directorates The Executive Committee meets almost every working day and discusses the drafts of major decisions prepared by the departments of the Bank of Japan

In necessary cases, heads of departments and other structural subdivisions of the bank are invited to meetings to address specific issues. Information about the issues discussed, points of view expressed and resolutions adopted is confidential and is not published in the press. In fact, it is at the meetings of the executive committee that prompt decisions are made related to changes in the financial situation in the short term.

The activities of the Bank of Japan in the field of monetary policy are regularly discussed in Parliament. As a rule, the manager speaks to the parliament ten times a year, but in difficult periods and more often (for example, in 1986 - 32 times).

Since 1985, the Bank of Japan has published a quarterly economic bulletin that analyzes the state of the monetary sphere, makes forecasts, and explains the Bank's policy orientation. The Political Council, through the Minister of Finance, submits an annual report to the Parliament, which assesses the financial situation of financial institutions, reports on changes in the Bank's supervisory policy, and comments on the Bank's policy.

The interaction between the Bank of Japan and the government on financing the latter consists in the possibility of guaranteeing short-term treasury bills that are not put up for public sale, have an interest rate below the discount rate of the Central Bank and, therefore, are not in demand. In addition, the Bank of Japan may guarantee, within the limits set by Parliament, government loans issued to refinance redeemable government bonds purchased from the private sector. Long-term lending by the Bank of Japan to the government is prohibited by the Finance Law.

As already mentioned, the banking system of Japan began to develop actively in the last third of the 19th century, when several private national banks were founded by wealthy merchants, created in the style of American banks with federal status. At the end of the 19th century, government banks were established, such as the "Exchange Bank" in Yokohama, which dominated the financing of foreign trade, and the Japan Mortgage Bank, modeled on the French bank Credit foncier.

Since the end of the 19th century, it was already possible to clearly divide private banks into large and small ones. The big banks, almost all nationwide, were based in big cities, whence their name "city banks"; they financed Japan's industrial development extensively and served as fiscal agents for the government, which strengthened their position. On the contrary, small banks, which were to become "regional banks", specialized in financing small handicraft and rural enterprises, from 1900 credit cooperatives became their main competitors. In 1895, the rule, introduced as a precautionary measure, was canceled to limit his risk in relation to one client to 10% of the capital of the bank. This allowed the big banks, by extending the degree of banking risk to some large enterprises, to contribute to the creation of industrial and financial giants called the Zaibatsu.

After the defeat in the Second World War, the Japanese banking system was restored almost entirely along the American model with a high level of specialization. Indeed, due to the great frugality of the Japanese, which is also characteristic of our time, the need for external financing of Japanese enterprises with a low ability to self-finance was very high. The Japanese government, following the traditions of the victorious Americans, who naturally imposed specialization in the banking field, preferred to “drain” their self-financing capabilities through a system of specialized channels by order.

At present, Japan's credit system can be considered as established and includes two main groups of institutions - commercial banks and other financial companies. Commercial banks can be classified as follows:

1.City banks. These 11 private banks play a leading role among the country's lending institutions. Their share in the total volume of attracted funds is constantly increasing. They also play a leading role in short- and medium-term lending, especially to large industrial concerns. City banks account for a significant portion of overseas operations of Japanese banks.

Bank of Tokyo is the leader in operations of city banks abroad. It actually performs state functions, maintaining correspondent relations with 2000 banks in different countries of the world. In accordance with Japanese law, it is entrusted with conducting foreign exchange transactions. To perform these functions, the bank has a large number of foreign branches. The well-known Daitz Bank also belongs to this type of bank.

In April 1982, a new banking law came into force, which repealed the 1928 law hitherto in force. Under the new law, commercial banks are allowed to trade in securities as ancillary operations. Thus, the city's banks gained direct access to securities trading on the Japanese stock exchange, which until now was the monopoly of brokerage firms specializing in securities trading. Thus, the process of universalization of Japan's city banks was initiated.

At present, city banks are conquering new markets by expanding their credit menu with long-term loans and loans to individuals, competing respectively with long-term lending banks and specialized financial societies "Sarakin".

These banks also try to attract as much as possible the savings of individuals, which are very large in Japan in the form of time deposits, since these savings are a form of savings for a long period of time to provide for retirement. But in this market of attracted deposits, commercial banks are not in the most privileged position. On the one hand, their main competitor in this area is the network of post offices, which the Japanese traditionally prefer when placing their financial savings and which enjoy tax benefits. Also, trust banks have greater benefits than city banks. On the other hand, city banks are not involved in the management of life insurance funds. And finally, due to their specialization, city banks cannot themselves manage the portfolio of securities of individuals.

2. Regional banks. 64 regional banks operate on the scale of one of the prefectures, have a smaller volume of operations compared to city banks, but a wide network of small branches. In their activities, regional banks focus on lending to small and medium enterprises, some of them accept savings deposits. By their nature, they are creditors. Regional banks play an important role in financing local governments. A number of these banks have significant assets, although they are inferior to those of city banks.

3. Three banks of long-term lending, which were established in 1952 by special law. These are Industrial Bank of Japan, Long Term Credit Bank and Nippon Credit Bank. The first two of them focused their activities on lending to the largest enterprises. The third is a mortgage bank specializing in operations with small and medium enterprises. These three banks are very important to Japan, representing approximately 10% of all banking system loans and financing at least 20% of equipment loans. Long before the city banks, they acquired significant international weight.

4. Trust banks. Initially created to manage property, but after the Second World War they received banking functions. They mainly carry out long-term financing of enterprises and individuals, as well as engage in financial management. Trust banks have time deposits and loans as resources. Five of them appear among the fifty largest world banks.

5. Foreign banks. The US and UK banks dominate the local market among foreign banks. There are also German, French and other foreign banks. Japanese banks began to experience competition from foreign banks only in the 60s. Until then, they developed their activities in only two directions: providing loans in foreign currency and lending to Sarakin consumer credit institutions.

Until the end of the 1960s, the country's money market was open only to selected foreign banks that had received a "registration" before the Second World War or in the first post-war years. The first branches of foreign banks were opened at the turn of the century - Hong Kong and Shanghai Banking Corp. opened an office in Yokohama in 1865, followed by the Chartered Bank. The first American bank was opened in 1902. Most of the "old" banks settled in Japan during the occupation of the country by US troops, before being signed in 1952. San Francisco Peace Treaty. These were the so-called banks, making a significant contribution to the national economy. After that, until the fall of 1970, the climate for the opening of new branches of foreign banks in Japan was unfavorable: foreign banks were subject to severe barriers to their entry into the country. This policy of the authorities was determined by the unwillingness to increase the number of foreign banks, as well as the prevailing view that the country was "overflowing with banks." The latter also applied to Japanese banks.

In 1970, the attitude towards the growth of foreign presence in the national banking sector of Japan was revised. This was due to the following factors:

The largest Japanese banks sought to expand their presence abroad, following the dynamically developing industrial sector. At the same time, the opening of their branches abroad, in the absence of reciprocity in this matter, turned out to be extremely difficult.

High growth rates of the national economy required foreign investments, the source and conductor of which could be foreign banks.

The need to improve economic relations with the United States, which have deteriorated as a result of trade wars.

The desire of leading politicians and financiers to liberalize banking in the country in order to turn Japan into the monetary and financial center of Asia.

Under the terms of liberalization, there were three ways for foreign banks to enter Japan: the establishment of a new bank with foreign capital or the establishment of a bank with mixed capital, participation in the management of an existing bank, and the opening of a branch. The number of branches of foreign banks began to grow rapidly.

Now Japanese law does not distinguish between foreign and Japanese banks: both are endowed with equal rights. The national specificity of this legislation, which is unusual for foreigners, lies in the fact that until 1992 it established a strict distinction between commercial banking and securities transactions and prohibited the combination of these two types of activities in one credit institution. Amendments to the banking law adopted in 1992 relaxed this requirement and opened the way for the universalization of banks.

For a Western banker with his entrepreneurial philosophy focused on maximizing profits, the meaning of the Japanese entrepreneurial strategy, which focuses on capturing the largest possible market share and increasing turnover, is not always clear. When these two principles of economic thinking clash, Western bankers in Japan often find themselves on the losing side. Another difficulty for foreigners lies in the dominance of closed industrial and financial groupings in the Japanese economy, at the center of which are the largest banks, primarily the so-called city banks. In these groups, financial interests and personal relationships are closely intertwined, based on the centuries-old foundation of Japanese moral and ethical traditions. Each of the members of the group can always count on help from its other members, including the leading bank. Applying for a loan outside the grouping is a rather rare phenomenon, and it is observed only when “one’s own” bank cannot provide such a loan, and a loan from outside occurs with the knowledge and consent of “one’s own” bank. Another feature of the Japanese banking system, unusual for the West, is meticulous supervision by the Ministry of Finance and the Central Bank, which can extend to current operations. All major financial transactions must be coordinated with higher authorities. There is no exception to this rule for foreign banks, which are required to report regularly to the Bank of Japan on their commercial activities. In turn, banks are informed about trends in the financial market.

In 1994, 88 foreign banks had 143 branches in Japan, which accounted for 1% of the country's credit market. Their main activity was servicing foreign trade operations and financing investments in foreign currency. Until the beginning of the 1980s, the provision of loans in foreign currency was the exclusive privilege of foreign banks, which provided them with an independent field of activity from local competitors.

Foreign banks explain the meaning of their presence in Japan not so much by the desire to profit from current operations, but by the desire to have strongholds in one of the largest financial markets in the world as part of their global strategy. Some banks focus on interbank transactions and engage in arbitrage transactions on international interest and currency markets. Other foreign banks direct their main efforts to servicing legal entities. In the field of interbank operations, the leading position is occupied by American banks, servicing legal entities is considered by them as a secondary direction. European and Asian banks pay more attention to the local clientele, that part of it, whose business activity is international. These customers are provided with relevant services outside of Japan. These same banks serve national firms with interests in Japan. The traditional activities of foreign banks include foreign exchange trading. Thanks to them, new financial instruments have appeared in Japan that insure risks in the field of foreign trade. They are widely used in the interest rate market: Japan is currently one of the largest international swap markets.

Japanese commercial banks can act as owners of a part of the share capital of corporations (not more than 5% of the total capital of corporations) and be represented on the boards of companies in which they own property; perform trust operations related to the issue of securities, but do not have the right to independently issue or place securities.

Other financial companies performing banking functions include:

State special banks(Exim Bank of Japan and Japan Development Bank) and public financial corporations. They are responsible for the targeted and efficient use of public funds intended to finance priority projects, including the development of agriculture, small business, and special regions of the country.

The Export-Import Bank was founded in 1950. Its original function was to finance only exports and imports. However, then he began to increasingly finance the export of equipment and technical assistance, as well as guarantee various financial obligations in foreign trade. National entrepreneurs receive loans from the bank for export deliveries, technical achievements, for imports and for foreign investments. Foreign partners are provided with import interbank and government loans.

The Japan Development Bank was established in 1951. It issues long-term loans solely to level the structure of industry. After World War II, the Japanese Development Bank played a leading role in the reorganization of large Japanese capital. As a state bank, it takes an active part in state-monopoly regulation. Loans, partly received from the International Bank for Reconstruction and Development, are directed exclusively to the largest firms, primarily shipbuilding and energy companies.

This is the seventh branch of a Japanese bank in Europe; in addition to Russia, Mitsui Sumitomo has offices in the UK, Belgium, Germany, France, Spain and Ireland.

There are now three people working in the Russian office, led by Takeshi Shirai, who previously worked in the representative offices of a Japanese bank in Malaysia and Indonesia. The Russian representative office of Mitsui Sumitomo is subordinate to the European department.

The task of the bank's department in Russia is still modest - to collect information about the Russian financial market. As representatives of Mitsui Sumitomo stated, at this stage they are not considering the issue of establishing a subsidiary company in the country. “We are going to support Japanese trading and automotive companies in the Russian Federation, but for this it is necessary to learn as much as possible about its market and the economic and political situation in the country,” explained Gazeta.Ru in the board of Mitsui Sumitomo in Japan. The Bank is considering the possibility of investing in the Russian energy business.

Mitsui Sumitomo received an office permit from the Central Bank of Russia more than a month ago, on July 15, 2005. “Russia demonstrates excellent and potential due to its huge reserves of natural resources and strong demand in the domestic market,” the company said in a statement.

Earlier it became known that two more leading Japanese banks intend to enter the Russian financial market in the foreseeable future. And if Mizuho Corporate Bank is only "considering such a possibility," then Tokyo-Mitsubishi Bank announced that it was ready in the spring of 2006 to create a banking organization in Russia that would deal with the entire range of banking operations.

All experts agree that Russia is now attractive for foreign banks. “There is a common interest of foreign banks in the Russian growing market. It is hardly worth saying here that Japanese banks are especially interested in it, this is now a global trend, - says Sergey Donskoy, banking analyst at Troika Dialog Investment Company. “Perhaps such interest is associated with such large Japanese investments as the construction of a Toyota plant near St. Petersburg, or perhaps not.” In any case, according to the expert, the behavior of Japanese banks and their attitude towards Russia is now determined not so much by this factor as by the common interest of the largest financial and credit structures in emerging markets.

“Now the Russian banking sector is actively developing,” agrees Rostislav Musienko, an analyst at IC BrokerCreditService. - If earlier foreign banks had no interest in it, now it is gradually increasing, there are many transactions in the oil and gas sector, they attract the attention of foreign banks. Now it is still quite easy to enter the Russian banking market, the competition with Western banks is not so serious here, and Russian banks can hardly be called competitors. But in a few years the situation may change, it will become more difficult, so foreign banks are in a hurry to enter the Russian market now.”

At the same time, according to experts, the arrival of large financial and credit structures in Russia will inevitably lead to increased competition among banks in the Russian market, and small banks will generally either disappear or be forcibly taken over by the “big business”. “For Russian banks, this may not be very good, but in general for the Russian economy it is definitely a positive factor,” sums up Sergey Donskoy.

Analysts say that the arrival of American, European and Japanese banks that adhere to higher corporate standards will improve the quality of services and make the banking business as a whole more transparent and efficient, as their Russian competitors willy-nilly have to adopt new rules of the game.