Japan could be regarded as falling in between these two groups: the Bank of Japan does not have regulatory authority over financial institutions, but, as mentioned earlier, based on provisions in the Bank of Japan Act, it conducts on-site examinations of financial institutions and provides various kinds of advice and guidance when the need arises.
Financial regulatory and supervisory systems around the world have been decided upon reflecting differences in countries’ financial structure, stage of economic development, and historical background, and thus there is no uniform set-up that is correct for all countries.