Loans outstanding among domestic private banks are adjusted for Notes: 2. special items, such as the foreign exchange rates. Sources: Japan Securities Depository Center; I-N Information Systems; Bank of Japan, etc.
The crisis has provided a stressful but valuable test for financial innovation and cross-border integration, indicating what needs to be changed so as to reap the benefits of integration and development for efficiency and growth, while safeguarding financial stability, by addressing potential systemic risks that might stem from these processes.