The Japanese Banking Sector Restructuring And Its Implications For China

With the tide of economic globalization and financial globalization sweeping the whole world, the degree of the financial innovation and liberalization are strengthened increasingly. If the bank wants to have more competitive advantages among the fierce international competition, the recombination of banks is undoubtedly the effective way of setting up big banks in a short time, which can realize large-scale economy and range economy, reduce the rivals, increase the market share, and strengthen the market force. Thereby, western developed countries experienced the unprecedented wave of M&A universally in 1990's.Since the burst of the bubble economy in the early of 1990's, the Japanese economy had been in a state of stagnation for a long time. In 1997 and 1998, Japan even felt into the most serious economic crisis with negative growth of GDP for continuous two years. Under such situation, Japanese bank stocks dropped sharply and the amount of bad assets increased quickly, which caused financial institutions bankrupted one after another. Facing a sluggish domestic economy and the wave of M&A and recombination started up by the international banking industry, Japan as the powerful nation in economy began a new round of recombination. The goal of the Japanese banking recombination was to achieve large-scale economy and to strengthen the international competitiveness so as to adapt to the objective requirements of the financial globalization, which was also the objective requirements of getting rid of the financial predicament, and deepening finance system reform. During this recombination, the Japanese government took the measures of formulating and revising relevant laws, improving the finance supervision system, disposing of the bad assets and promoting the bank operation core capability, which made more than 20 original big banks merge into the Japanese Big Three financial groups now, namely Mitsubishi UFJ, Mizuho Holdings Incorporation and Sumitomo Mitsui Banking Corporation. The significance of Japanese banking recombination was great and far-reaching. Firstly, it expanded the market share, also realized the range economy and diversification. Secondly, it promoted the Japanese financial innovation and drove the financial system reform. Finally, it drove the recovery of Japan's economy and accelerated the process of financial internationalization and liberalization. However, Japan also faced some problems, such as, increased the employment pressure, brought some potential strategy and management risks and harmed the benefits of consumers due to increasing banking monopolization, etc.At present, Chinese banking recombination is also carrying on. China and Japan have big similarity in the aspect of banking recombination. Careful studies of Japanese banking recombination will bring some important referential significance to the reformation of the Chinese financial system. This thesis starts with the theories of the' banking recombination, and analyzes the characteristics, measures, influence and problems of Japanese banking recombination based on the general introduction of its background and development condition. At last, the thesis proposes some targeted policy and recommendations on our banking recombination from the actual situation, the existed problems of Chinese banking recombination and Japanese experience and enlightenment.