International Comparison of Non-Bank Sectors - Presence of Domestic Financial System from Data Perspective: BOJ Review

Overview

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."