I would like to take this opportunity to first discuss recent monetary and economic conditions in Japan and issues regarding the financial system. I would then like to discuss the Bank of Japan’s views on financial market reform in Japan, the subject of heated discussion since Prime Minister Hashimoto proposed the “Big Bang” deregulation package for Japan on November 11, 1996.
The financial markets constitute the infrastructure supporting a nation’s economy, and thus their efficient and stable functioning is essential to the promotion of unhindered economic growth in the long term. Accordingly, market reform has become an urgent issue in Japan, as the financial markets seem to be losing international competitiveness.