In this regard, the Council on an Industrial Growth Strategy for Shizuoka Prefecture, chaired by Governor of Shizuoka Prefecture Heita Kawakatsu, was established in March this year, providing a platform for the aforementioned four players to develop growth strategies for the region in a unified fashion.
If the stress tests do not evolve, they risk becoming a compliance exercise, breeding complacency from both supervisors and banks. We might also, inadvertently, encourage the development of a banking system where, over time, all banks would look much alike rather than the banking system we want and need, one with diverse institutions with different business models. We simply can’t let these things happen.