In this regard, one lesson we have learned from the bubble period in Japan is that although individual financial institutions conducted risk management, which eventually turned out to be insufficient, enormous concentration of risk could arise at a macro level.
What is more, the gap has been much larger than in other major economies. This is attributable to the excess supply capacity that has not been adequately adjusted relative to the level of domestic demand, which has stayed sluggish since the bursting of the economic bubble.