Number: RS22960
Title: The U.S. Financial Crisis: Lessons From Japan
Authors: Dick K. Nanto, Economics Division 
Abstract: Japan's five bank bailout packages in the late 1990s may hold some lessons for the United States. Most of the packages were administered by the Deposit Insurance Corporation of Japan (DICJ). The packages had an announced value of $495 billion. The DICJ reports that it provided $399 billion to Japan's troubled financial institutions of which it has recovered $195 billion. Overcoming the crisis in Japan's banks took a combination of capital injections, new laws and regulations, stronger oversight, a reorganization of the banking sector, moderate economic recovery, and several years of banks working off their non-performing loans.
Pages: 6
Date: October 2, 2008