At that time, Japan as a nation faced a need to found a central bank in order to collect the large amount of banknotes issued by the Meiji Government after the Seinan War in 1877.
1 The plan Since it became evident last year that heavy loan-losses were inevitable at the banks, and that the Government was going to meet the losses arising from the bursting of the construction and property bubble, the plan has been to divide and conquer the risks by putting the banks – as institutions – firmly back on their feet without being dependent on either future assistance or threats from government; thereby freeing the government finances from the apparent threat of bank-imposed costs.