Deregulation and Liberalization Tribulations — the 1990s
In the late 1980s, Japan was moving to a competitive market-based system of banking and capital markets. The financial institutions were under great pressure to cut costs, increase efficiency and develop new financial products, with a view to compete. Of course, the new environment created new kinds of risks, along with new opportunities and dangers of taking risks, including interest rate risk for assets and liabilities, exchange rate risk and credit risk due to intense competitive pressures on corporations.
KeywordsInterest Rate Monetary Policy Central Bank Real Interest Rate Government Bond
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