Competition among financial institutions to provide various financial services and develop advanced risk management techniques will not only strengthen financial institutions' ability to provide valueadded services but also enhance the functioning of financial markets, thus leading to increased financial system stability. Enhancing the functioning of financial markets is also very important for firms.
This will not only increase the efficiency with which firms can raise and invest funds, but will also promote business restructuring, which has been increasing among Japanese firms, as well as facilitate balance-sheet adjustments.