In Japan, through the growth, and subsequent collapse, of the
so called economic bubble, it has become necessary to completely
review the economic and social system. This is an urgent task
shared by all Japanese.
In order to maintain the vitality of the Japanese economy, in
the context of society's rapid aging in the twenty-first century,
it is necessary to structurally reform the economic and social
system. The financial system, as the basis for the economy, must
also be reformed into one that is superior and able to support
the Japanese economy.
The Financial System Research Council established the Committee
for the Advancement of the Financial System and Services to inquire
into the various functions that financial services are expected
to perform in the twenty-first century. Since its first plenary
meeting held on August 28, 1996, it has carried out a wide ranging
inquiry. In the middle of this, in November 1996, Prime Minister
Hashimoto directed that the financial system be reformed. The
Committee immediately took up this direction and earnestly held
deliberations, one after the other, on a reform plan that will
be completed by the year 2001.
Here, the results of this Committee's deliberations are delivered
in the form of the report, "Regarding the Reform of the Japanese
Financial System - Contributing to the Vitalization of the National
Economy" and approved by this Council. As there are specific
and necessary measures in this report by which the financial system
reform can be advanced, its Council hereby submits it as the report
of the FSRC.
From here, we strongly expect that the Government will steadily
advance reform of the financial system and take necessary measures
based on this report.
It is very deplorable that scandals involving financial institutions
have occurred often. It is necessary for financial institutions
to restore trust as soon as possible, by ensuring that corporate
ethical standards are pervasively employed. It is natural to
require a high degree of self discipline together with liberalization.
Thus, it is necessary for financial institutions themselves to
diligently work to reform their management in order to achieve
the financial system reform. As financial institutions are indispensable
players in this reform to vitalize the national economy, we strongly
hope that financial institutions will consider their business
operations and conduct, taking their users' opinions into account,
and manage their businesses, with the awareness of its public
nature, to find their place in the financial system of the 21st.
century.