Supply of Risk Capital for Regional Development in Japan



In this chapter, we indicate the limits of the present form of financial intermediation, and show how funds such as the Hometown Investment Trust (HIT) funds can point the way to the future. As Japan’s domestic financial system has transitioned from a multi-layered to a single-layered form, it has become clear that excessive reliance has been placed on indirect financing, which has reached its functional limit in financial intermediation. Despite over 10 years of discussions in various public–private forums, there has unfortunately been no significant change in the financial structure itself (Akai, Ann Soc Econ Stud Securities 45, 2007a). Nevertheless, the direct–indirect responses to the international financial crisis of 2008 have given rise to several fascinating public–private initiatives for supporting local economies.


Real Estate Financial Institution Real Estate Market Individual Investor Financial Intermediation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Akai A (2007a) Lessons from world financial crisis and opportunity for Japanese asset-finance market: as a unique local market model to support real economy. Ann Soc Econ Stud Securities 45:146–151Google Scholar
  2. Akai A (2007b) The transformation of Japan’s financial market and the future of the real estate securitization business. CMBS World, pp. 20–27 and p. 63Google Scholar
  3. Akai A (2009) Japanese asset-finance market and property market data: recent developments and future. J Prop Assess Policy (20):1–8Google Scholar
  4. Akai A (2010) Financial framework to support projects on renewal of urban functions in the new international economic environment. Keidanren Trend, pp. 32–35Google Scholar
  5. Financial Services Agency (2012a) The action plan for the new growth strategy, December 2010. Accessed 31 Oct 2012
  6. Financial Services Agency (2012b) Publication of taxation of revenue bonds Q&A. Accessed 31 Oct 2012
  7. Japan Securities Dealers Association (2009) Working group on distributions of securitized products: final report, March 2009. Accessed 31 Oct 2012
  8. Ministry of Land, Infrastructure, Transport and Tourism (MLIT) (2006) Real estate securitization in Japan. MLIT’s press release of December 2006.; Accessed 31 Oct 2012
  9. Ministry of Land, Infrastructure, Transport and Tourism (MLIT) (2009) Implementation of the project for promoting the supply of non-recourse loans for regional urban development and call for arrangers. MLIT’s press release of April 2009. Accessed 31 Oct 2012
  10. Ministry of Land, Infrastructure, Transport and Tourism (MLIT) (2010) Report of the committee on real estate investment market strategy. Accessed 31 Oct 2012
  11. Secretariat of the Urban Renaissance Headquarters, Cabinet Secretariat (2011) Basic policies for urban renaissance, totally revised edition. Accessed 31 Oct 2012
  12. Urban Renewal Coordinator Association of Japan (2008) Report by the study group concerning the market development of the non-recourse loans for regional urban developmentGoogle Scholar

Copyright information

© Springer Japan 2013

Authors and Affiliations

  1. 1.Morgan Stanley MUFG SecuritiesTokyoJapan
  2. 2.Waseda UniversityTokyoJapan

Personalised recommendations