This article analyzes the scale and characteristics of Japan's non-bank (shadow banking) sector from an international comparative perspective.
Main Points
1. Scale of Japan's Non-Bank Sector
- Total assets: 580 trillion yen (103% of GDP)
- Ratio to banking sector: 40% (banks 1,450 trillion yen)
- Composition: Insurance 250 trillion yen, pension funds 170 trillion yen, investment trusts 110 trillion yen
- 10-year growth rate: +65% (banks +15%)
2. Position in International Comparison
- United States: Non-bank ratio 75% (significantly exceeding banks)
- EU: 55% (centered on investment funds)
- China: 45% (rapid growth but strengthening regulation)
- Japan: 40% (most bank-dominant among developed countries)
3. Characteristics of Each Sector
- Insurance: Prominent life insurance, holding government bonds for ultra-long-term investment
- Pension funds: GPIF world's largest, increasing stock ratio
- Investment trusts: Expanding for individuals but REIT-heavy
- Others: Limited FinTech and non-bank financing
4. Role in Financial Intermediation
- Corporate finance: Direct finance ratio 25% (U.S. 65%)
- Household assets: Deposit bias 54% (investment trusts only 8%)
- Risk capital: VC investment amount 1/50 of U.S.
- Government bond holdings: Non-banks hold 45%
5. Policy Implications and Risks
- Growth promotion: Urgent need to cultivate asset management industry
- Risk diversification: Need to reduce bank concentration risk
- Regulatory response: Prepare for strengthening international NBFI regulation
- Financial stability: Strengthen interconnectedness monitoring
The article concludes that the development of Japan's financial system requires further growth and functional enhancement of the non-bank sector, and structural reform is needed to achieve "from savings to investment."