[Financial System]
Last November, the Prime Minister, Mr. Hashimoto issued directions to the Minister of Finance, Mr. Mitsuzuka and the Minister of Justice, Mr. Matsuura to engage upon a financial system reform, the so-called Japanese version of the Big Bang, with the aim of revitalizing the Japanese financial market commensurate with the international markets of New York and London by the year 2001.
In the "aging" society of the 21st century, in order to ensure the continuation of Japan's economic vitality, it is necessary to find a more efficient way of investing private assets which reach up to 1,200 trillion yen. It is important to provide funds for the developing industries that carry the coming era on their shoulders. Further, to make a contribution to international society commensurate with its economic strength, it is imperative that Japan provides a smooth supply of funds for the world.
Looking at things from this viewpoint, financial system reform is the drastic advancement of reform in the financial market, conforming to the three rules of; free, or, a free market which employs market principles; fair, or, a transparent, trustworthy market; and, global, or, an international market ahead of its time. Looking at this from the viewpoint of the consumer, it is likely, for example, that with the emergence of products responding to a wide range of needs, and the expansion of business range of banks and securities firms, it will make for more variety and more ease in the use of savings, resulting in added financial convenience.
On the other hand, to regenerate the vitality of Japan's financial market along with the promotion of these reforms, it is necessary to take immediate care of the bad debt of banking institutions, and reformation must be proceeded with the utmost caution in stabilizing the financial system.
Considered as one of the six most important subjects of fiscal structural reform and economic structure reform, this reformation will be engaged with all powers available.
Financial System Reform (June 13, 1997)
Steps taken so far leading up to the Big Bang
The originator of the Big Bang, England