Dealing with a banking crisis: what lessons can be learned from Japan’s experience?

Quarterly Bulletin 2014 Q1
Published on 14 March 2014

By Benjamin Nelson of the Bank’s Monetary Assessment and Strategy Division and Misa Tanaka of the Bank’s Prudential Policy Division.

This article examines Japan’s policies in dealing with its banking crisis during the 1991–2004 period, in order to draw lessons for policymakers today. Japan’s policy choices reflected a difficult trade-off between the need to contain moral hazard on the one hand, and the need to limit systemic risk on the other. The resolution of the crisis ultimately required recapitalising banks and resolving uncertainty over banks’ asset valuations.

PDF Dealing with a banking crisis: what lessons can be learned from Japan’s experience?

This short video explains some of the key topics covered in this article

Was this page useful?
Add your details...