Financial services in Japan

Financial services in Japan refers to the services provided in Japan by the finance industry: banks, investment banks, insurance companies, credit card companies, consumer finance companies, government sponsored enterprises, and stock brokerages.

Financial institutions

Japanese law defines several types of financial institutions:

• The central bank (中央銀行), currently the Bank of Japan.
• Commercial banks (市中銀行), divided into three types:
  • Long-term credit banks (長期信用銀行), a defunct classification
  • Trust banks (信託銀行)
  • Ordinary banks (普通銀行), divided into four types:
    • Money center banks (都市銀行), those headquartered in Tokyo or Osaka and serving the entire country of Japan. Following the industry consolidation of the 1990s, this sector currently consists of three "megabanks" (Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and Mizuho Financial Group) and three smaller banks (Aozora Bank, Resona Holdings and Shinsei Bank)
    • Regional banks (地方銀行)
    • Secondary regional banks (第二地方銀行)
    • Other banks, comprising a number of unofficial categories including:
      • Direct banks (ネット銀行)
      • Local retail subsidiaries of foreign banks (Citibank and Shinhan Bank)
• Other government-chartered banks, which include:
  • Japan Post Bank
  • Development Bank of Japan
  • Bridge banks (承継銀行), entities temporarily established by the government to take over the operations of failed banks

Foreign companies

There are over 50 foreign banks in Japan, including Citibank, JPMorgan Chase, HSBC, Deutsche Bank, Credit Suisse, ABN AMRO, ING Group.

International ATMs

Both Japanese and foreign citizens may apply for an international ATM card corresponding to an interbank network such as Cirrus or PLUS. Foreign citizens need to show the Alien Registration Card for account creation.

Interbank ATMs are common throughout the country, especially in densely populated urban areas.

Liberalization

In April 2007, Japanese prime minister Shinzo Abe asked Japan's financial regulator to draw up measures to relax the rules that separate banking and broking businesses .^[1]

References

See also

• Economy of Japan
• List of banks in Japan