Abstract

The main bank system (MBS) is analyzed in the paper in the context of the changes occurring therein after 1990.
The peculiarities of the system before 1990 are concisely characterized and illustrated with data and the functions of the main bank (MB) are analyzed.
The sources of the economic problems in the 1990s in Japan are outlined in the light of the changing relations between banks and large non-financial companies. The (mis)functioning of the traditional corporate governance mechanisms as regards the MB in Japan - the capital market, competition in the banking sector, and regulatory organs - is analyzed.
New developments in the banking industry in Japan in the 1990s - liberalization of financial activity, changes in financial supervision, bank mergers and the emergence of new types of banks - are considered as having shaken the MBS, but not yet brought about its demise.