Study Group on the Financial System Publishes FY2004 Reports (Only in Japanese)

The Study Group on the Financial System (established by JBA and headed by Professor Keimei Kaizuka, Chuo University) compiled and published reports based on their fiscal 2004 studies.- Report of the first subgroup "Development of e-Money and Economic/Financial Systems"The first subgroup, (subgroup leader: Professor Yoshinori Shimizu, Hitotsubashi University) studied how the rapidly spreading payment means of e-money is affecting the economic and financial systems, the necessity for implementing measures, and the effect of e-money on the financial policy and settlement system, etc. The composition of the report is as follows.Introduction: "Economy and Legislation of e-Money"Chapter 1: Conditions for the Growth of e-MoneyChapter 2: Spread of e-Money and Selection of Payment MeansChapter 3: Demand for Small Payment Means and Possibility of e-MoneyChapter 4: Analysis of e-Money ImpactChapter 5: Co-existence of e-Money and Cash and Other Payment Means- Report of the second subgroup "Desirable Governmental Finance Reform"The second subgroup (subgroup leader: Professor Toshihiro Ihori, University of Tokyo) deliberated on how to reform governmental policy finances. The subgroup recognizes that time is ripe for exploring desirable governmental policy finances in the present Japanese economic environment in which the corporate sector posts surplus fund and the government's role in providing funds to the private sector is diminishing. Consequently, the timing is ideal for requiring the issue of fund flows to be addressed. Specifically, the flow of funds that was directed from the private sector to the government throughout 1990s needs to be corrected. The study group deliberated on the (1) Review of private sectors financed by the government, (2) Review of financing methods, and (3) Review of organizational forms. The composition of the report is as follows.Chapter 1: Flow of Funds and Public Finance ReformChapter 2: Business Reconstruction and Governmental Intervention in Money MarketsChapter 3: Comparative Analysis of Governmental Policy Finance with regard to Loans, Guarantees and SubsidiesChapter 4: Corporate Governance and Structures of Public Financial Institutions