The Impact Of Foreign Bank’s Entry On Japanese Banking

The banking system is the most important part of the national economicstructure, at the same time it has the complexity. The entry of foreign banks willcertainly produce various influences on the host country’s banking system. Japanopened early to foreign banks, and Japan’s attitude to the foreign banks was passivelyaccept and policy regulation at the very beginning. Later, because of the needs ofeconomic development, it gradually became to open initiatively, and eased in theaspect of regime. In this process, the Japan’s banking industry experienced the periodof economic recovery, prosperity and development, bubble economy, the GreatDepression and economic return. The entry foreign bank can not only promote thedevelopment and improvement of financial markets, but also increase the difficulty offinancial regulation and impact the domestic banking system, and so on. Fluctuationsin the economy will certainly impact the banking sector, combined with theparticipation of foreign banks, it will take more diverse and complex impacts. In thisbackground, the paper, with the method of combining theory and data, studied theinfluences on Japan’s domestic banking industry for the entry of foreign banks.Firstly, this paper simply described the development history of foreign banks in Japan,as well as the development of each stage. Secondly, this paper introduced thedevelopment and management of foreign capital banks in recent5years, from theaspect of total assets, net assets, net profit or loss etc. And it mainly introduced thesuccessful case of Citibank in Japan. Finally, this paper proved its points of viewmainly from two aspects: theoretical analysis and real data analysis.