The Financial System Report of Bank of Japan: a focus on banks and insurance

More specifically, through an international comparison of financial institutions' profits and business resources, the Report (1) shows that Japanese financial institutions have little non-interest income and depend on net interest income as a profit source; and (2) examines the possibility that the number of employees and branches is excessive relative to demand. Furthermore, we review how, through competition among financial institutions, a nationwide and persistent decline in population and the number of firms will affect the relationship between firms and financial institutions, and the systemic risk.