Japanese Banking

How did the Japanese achieve their unrivalled position in world banking? This study examines the creation of the Japanese banking system, over the century of 1859-1959, the first to do so in English. By 1897, the financial authorities in Japan had created a currency backed by gold, supported by a variety of banking houses. In the twentieth century Japan began to flex its military muscles and made much profit during the first world war. However, the following slump was exacerbated by a devastating earthquake leading indirectly to financial collapse in 1927. During the 1930s the banks of Japan were expected to support Japan’s military aggression. The American ‘democratization’ programme after 1945 proved less damaging for Japanese banks than had been feared. This clear and stimulating account will prove of absorbing interest to those engaged in any business relationship with Japan.