Furthermore, whether or not such commitment is being fulfilled is judged neither by the government nor the Bank, but by the markets. If concern over the government’s commitment heightens in the markets, effects will materialize in the form of expansion in risk premiums in the JGB market; however, the Bank’s prescription for a response is limited (Chart 13).
It lays out the principles the government should follow in advocating and establishing the framework of corporate governance, including the enforcement mechanism of formulating corporate governance principles, the protection mechanism for the parties involved in corporate governance, and the approach to avoiding rising cost incurred by excess supervision, etc. Hence, the Principles of 2004 was expanded to six chapters.