The collapse of the Japanese economy in the 1990s, and subsequent proliferation of non-performing loans (NPLs), forced the country's financial sector into a long, painful period of adjustment. This, according to Yoshinobu Yamada, senior analyst at Deutsche Securities, occurred largely after the Asian crisis, between 1997 and 2003.
“Banks shed 30% of their workforce and in the 2000s, after the public funds injection they received reduced their expenses considerably. In terms of restructuring, the three mega banks are now about 10 years ahead of their Western counterparts”, he says.
