The financial sector faced dramatic changes in the wake of the “Lehman shock” of 2008 and the ensuing financial crisis. The industry has been subjected increasingly to broader and more intrusive regulations aiming to curb market instability and tackle the structural factors behind the global financial crisis. At the same time, the financial industry, including the banking and insurance sectors, is undergoing an unprecedented diversification of products, services and solutions, triggered by new demand, technological innovation and the rise of emerging markets.
Japan’s financial sector faces unique challenges. While tighter regulations have been the trend in virtually all G7 countries, Japan’s financial policy in recent years has been dictated by the overriding task of jump-starting the economy while keeping one eye on fiscal consolidation. The finance sector has been affected by each of the three arrows of Abenomics – massive monetary easing from the Bank of Japan, aggressive fiscal stimulus, and wide-ranging structural reforms to improve Japan’s competitiveness. The Abe administration’s focus on growth policies has played a major role in restoring Japan’s financial sector to health. Japan is determined to make itself more business friendly, with plans for corporation tax to fall below 30%, reductions in the rates of R&D tax, numerous incentives for inward foreign direct investment, and reforms such as the new legislation on cyber-security, data security and personal information.
GR Japan has an extensive network across government stakeholder institutions such as the Ministry of Finance, the Financial Services Agency, and the Center for Financial Industry Information Systems, as well as the finance-related committees and divisions in the Diet and the major political parties, allowing us to gather intelligence quickly and efficiently and to help clients respond to emerging opportunities and challenges.