This in turn has altered the relationship of banks

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Unformatted text preview: reform was ambitious and, even though it has been toned down (with important features, such as reducing the safety net, postponed), it includes elements which will further change Japan’s financial model (Beason and James, 1999; Horiuchi, 2000; Kanda, 2000). Furthermore, both regulatory changes and macroeconomic performance have already resulted in large changes in corporate-financing patterns for some classes of firms (Hoshi and Kashyap, 1999). This, in turn, has altered the relationship of banks with their traditional clients, and forced them into new areas of business. Hoshi and Kashyap see the logical continuation of this trend driving corporate financing patterns towards US levels of bank-debt finance, with the result that major shake-outs will reduce the banking infrastructure by approximately 30 per cent.18 Turning to the labour market, Genda and Rebick’s assessment in this issue of rather slow change is echoed by the OECD. In this area, however, the impetus for change will come from the private sector. Current and historical patterns have not been predominantly the result o...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.

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