allowed them to expand their activities into traditional banking; as a result, they are now competitors of the big four. Among contractual savings institutions there are pension funds and insurance companies. They both constitute a large proportion of household assets, significantly larger than in other countries. Insurance services are provided by bank subsidiaries as well as insurance companies. The insurance industry, unlike banking, is not dominated by a few large players. The banking sector in Japan comprises shareholder-owned banks (ordinary banks, trust banks, and long-term credit banks) and cooperative banks (credit unions and credit association). Ordinary banks , the counterpart of commercial banks in other countries, provide mainly short-term loans to individuals and corporations. Trust banks provide long-term loans to corporations, in addition to a range of services (ordinary banking services, asset management, investment advisory services). Long-term credit banks provide long- and medium-term loans (mainly to
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This note was uploaded on 09/23/2009 for the course BUSI 101 taught by Professor Wormer during the Spring '08 term at Acton School of Business.