'Big Bang' Deregulation and Japanese Corporate Governance: A Survey of the Issues

Abstract

In November 1996, Japanese Prime Minister Hashimoto announced a Big Bang policy to deregulate Japanese financial markets. Following a period of planning, implementation of the Big Bang began in April 1998 when all remaining restrictions on foreign exchange transactions were removed. It is scheduled to continue through March 2001. A listing of the deregulation agenda is dominated by measures to remove restrictions on how banks and securities firms do business and allow cross-entry of banks, securities firms, and insurers into each others’ businesses (Table 12.1).