Financial institutions can play a significant role in that regard by being involved in creating investment funds. Moreover, the role of a financial institution as a lender is also not insignificant.
Many Japanese financial institutions appear to have been relying too much on real estate collateral and personal guarantees when providing loans especially to medium and small firms, and governance after loan provision has not necessarily been sufficient. Financial institutions are required to bolster firms’ growth constantly through deepening the ongoing relationship with them.