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 2005 studies on July 21.
1. Report of the First Subgroup: Remodeling the Financial System in Preparation for Emerging Financial Conglomerates
The First Subgroup, (subgroup leader: Professor Yoshinori Shimizu, Hitotsubashi University) studied this theme to compile recommendations on handling the walls between banks, securities firms and insurance companies; and also those between banking and commerce. The Subgroup hopes the findings will help promote competition in financial services, enhance customer benefits, revitalize financial markets, strengthen international competitiveness and secure fair competition. The U.S. and European experiences have also been examined in the study. The composition of the report is as follows.
Introduction Remodeling the Financial System in Preparation for Emerging Financial Conglomerates
| Chapter 1: | Walls between Banking and Commerce ? Where is the Blue Bird ? |
| Chapter 2: | Restriction on Scope of Business Conducted by Banks |
| Chapter 3: | Theoretical Study on Restriction on Banks Engaging in Other Businesses |
| Chapter 4: | Financial Conglomerates and Market Discipline |
| Chapter 5: | Emerging Financial Conglomerates and Insurance Companies ? Can Insurance Companies be incorporated into Financial Conglomerates ? |
2. Report of the Second Subgroup, Desirable Japanese Governmental Budget and the Affects of Budgetary Reconstruction
The Second Subgroup (subgroup leader: Professor Toshihiro Ihori, University of Tokyo) deliberated this theme with an eye on ongoing discussions on the need to reconstruct the governmental budget, and the need for package reform of revenues and expenditures among the government, parliament and other business circles. The Subgroup had recognized the necessity to make concrete plans for a desirable government budget and budgetary reconstruction process in Japan, and has examined how foreign countries are tackling budgetary reconstruction problems. The composition of the report is as follows.
| Chapter 1: | Current Status of Japanese Governmental Budgets and the Budgetary Reconstruction Process in the U.S. and Europe |
| Chapter 2: | Revenue Issues |
| Chapter 3: | Desirable Budgetary Management and Financial Policy |
| Chapter 4: | Budgetary Reform in Regional Governments that make Budgetary Reconstruction Compatible with Decentralization |
| Chapter 5: | Budgetary Management Strategy toward Year 2025 |