It seems that the regional financial institutions have also been focusing on the long-term transaction relationship with local firms as in the past. Third, in terms of risk-taking, Japanese financial institutions generally appear to have been maintaining a cautious stance.
Behind that was a powerful effect of Japanese financial institutions’ experience of incurring massive losses in the aftermath of the bursting of the bubble in the 1990s. One of the lessons learned from the bubble and its burst was the size of risk of concentrating credit on specific industries or firms.