I hope that Japanese financial institutions will establish their respective business models and pursue proactive efforts including tapping new fund  4  BIS Review 172/2010  demand, while skillfully gauging various changes in the business environment at home and abroad. Second, it is also important to raise the core profitability of the existing borrowing firms through enhancing their governance.
It has often been said in Japan that corporate governance that raises a firm’s profitability has been weak. There are many views that, one way to overcome such weakness is to use equity funds, which have a strong tendency to search for yields, as leverage to strengthen corporate governance from outside.