Fortunately, it seems clear that, if the CEO chooses to govern in the interests of shareholders, he or she can, by example and through oversight, induce corporate colleagues and outside auditors to behave in ways that produce de facto governance that matches the de jure shareholder-led model. Such CEO leadership is critical for achieving the optimum allocation of the nation’s corporate capital.
14  16  18  Chart 10  Credit Cost Ratios 0.8  %  Major banks Regional banks Shinkin banks  0.6  0.4  0.2  0.0  -0.2 FY 2006  08  Source: Bank of Japan. 10  12  14  16  18