Principal Financial Institutions
(1)Chart
- *
- As the laws related to the privatization of postal services took effect in October 2007, Japan Post Bank Co. and Japan Post Insurance Co. started their operations as subsidiaries of the government owned company Japan Post Holdings Co. Both institutions are categorized under “public financial institutions” in the above chart because they are in a transition period toward final privatization slated for the end of September 2017 at the latest. The Development Bank of Japan, Inc. and The Shoko Chukin Bank, Ltd. are treated in the same manner until the final privatization scheduled for sometime during the period from 2017 to 2019.
- Note:
- Figures in parentheses represent the number of finacial institutions in each category basically as of April 1, 2009.
Types of Banks
Private banks can be divided into several categories, based on such factors as their business function or historical background. The distinction between city, regional banks and member banks of the Second Association of Regional Banks (regional banks II) is not a legal one, but is a customary classification for the purposes of administration and statistics. City banks are large in size, with headquarters in major cities and branches in Tokyo, Osaka, other major cities, and their immediate suburbs. Regional banks are usually based in the principal city of a prefecture and they conduct the majority of their operations within that prefecture and have strong ties with local enterprises and local governments. Like traditional regional banks, regional banks II serve smaller companies and individuals within their immediate geographical regions. Most of these banks have converted from mutual savings banks to ordinary commercial banks.
(2)Market Share
Banks play a dominant role in the Japanese financial markets. Banks’ share is 64.9% of the total fund-raising and 64.2% of the total loan.
Market Share of Financial Institutions (%, as of the end of 2008)
- Notes:
- (1) Funds include deposits, debentures and trusts.
- (2)
:Banks
- Source:
- Bank of Japan
