A Comparative Study Of The Banking System And The Impact Of Economic Development In Post-war Germany And Japan

The financial system is the most important component of modern economy, of which the construction of the banking system is one of the most important elements. Germany and Japan is an interesting study with reference to the body:Firstly Germany is located in the West, whose basic social values are for the western basic values, while Japan is located in the east, influenced by the oriental culture; Then, Germany and Japan are both the younger generation of the capitalist countries in1870s, and they both had not carried out thoroughly bourgeois revolution, but entering the list of the capitalist powers by reformism; Lastly, the two countries are characterized by close integration of banking and commercial and industrial capital, emphasizing the importance of banking system in their history role of economic development. These two countries have strong feudal and militaristic style, provoking a bloody World War Ⅱ, while were equally inevitable ending with defeat and economy collapse. Germany and Japan were both defeated countries of World War Ⅱ, whose post-war economy were built on the basis of the U.S. economic aid and reconstruction. In the very lack of funds for the construction of key historical period, the banking system of the two countries had played an important role. The two countries also experienced long-term prosperity in postwar, and won the world’s second and third largest economy respectively in the1970s around.Commercial banking system in Germany and Japan in promoting economic growth, the main banking system of the German is "nanny" type:provides a full range of financial services for the corporate finance, achieves its financial function through market competition and has higher conversion rate of savings investment; while Japan’s main bank system is a type of "guardian", provides unconditional assistance services for enterprises, achieves its financial function through government guidance, comparatively speaking, has lower conversion rate of savings investment, but the marginal productivity of capital is higher, reflecting government has strong ability using funds to guide the upgrading of the industrial structure effectively, ultimately achieving rapid economic growth.Germany and Japan’s central bank system in maintaining economic stability, German bank regulatory system is designed to face the complexity and diversity of its banking system and the unique system of universal banking. It should be said that over the past century, the German banking supervision has been very successful, which still calls more and more high in today’s global banking growing. Japan follows the United States to establish a modern banking system, but its banking supervision is not learn from the United States. It can be said, it’s unique banking supervision is in line with the situation in Japan, but also to ensure the rapid development of the Japanese banking system. From the independence of the central bank, the German central bank has higher independence, for independent of the use of monetary policy tools to maintain price stability, and the independence of the central bank of Japan is poor, since its main aim is economic growth.The banking system of Germany and Japan can promote economic growth, but to maintain economic stability and to response to domestic and international environment change are different, the German economy can always maintain steady growth, while Japan entered a long period of economic downturn.Differences in the banking system lie in the institutional factors. First of all, Germany advocates the economic system of market competition, the enterprise is the main executor and undertaker of economic operation and economic policy, while the state does not directly intervene in the allocation of resources, thus bring comprehensive commercial Banks and central bank system with strong independence. Secondly, the Japanese in postwar advocated rapid economic growth in order to achieve the goal of catching up with the developed capitalist economy, and its economy is dominated by the government, the banking system is the main executor and undertaker of economic operation and economic policy, while the state directly intervenes in the allocation of resources, resulting sub-industry type commercial banks and the Central Bank with poor independence. Finally, in response to the changes in the domestic and international environment, with the scope of direct financing of the capital market has been expanded and the rise of financial liberalization, the economic system of Japanese government intervention become increasingly unsuited to the changes in the environment, which led to big problem in the banking system and cannot effectively assume the optimal configuration of the elements between the individual and the enterprise program, resulting in long-term economic downturn.The banking systems of these two countries are different, resulting in differences in the impact of economic growth and economic stability. However, these differences have very profound significance on China’s economic development and the construction of the banking system. This article starts with the comparative analysis of the economic background of post-war Germany and Japan and the current China, then studies the role of the bank system differences of Germany and Japan on economic growth and economic stability, at last puts forward the enlightenment of the construction of China’s bank system.