The decline in wage levels also contributed to deflation through a decline in the prices of services which are labor intensive. In fact, a significant portion of the inflation differential between Japan and the United States reflects changes in service prices rather than goods prices.
Where appropriate, this should be done on a “same business, same risk, same rules” basis. High-quality customer due diligence is, of course, essential. But it is relatively costly for crossborder transactions. So the FSB wants to improve confidence between financial institutions and between jurisdictions.