(1) PURPOSE OF THE LAW AND SYSTEM
Recognizing the public nature of banking business, this law aims at achieving sound and appropriate operation of banks and thereby contributing to the sound development of the national economy, in order to maintain credibility and ensure protection of depositors as well as promoting smooth finance. In application of this law, consideration must be given to respecting the independent endeavors regarding the operation of business of banks.

(2) OUTLINE OF THE LAW AND SYSTEM
None shall engage in banking unless licensed by Prime Minister (Article 4).
Banks may engage in businesses such as acceptance of deposits and/or installment savings, etc., lending of money and/or the discounting of bills, and conducting of exchange transactions (Article 10). The amount of bank's capital shall be not less than one billion yen (Article 5).

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Order of the Banking Law
Enforcement Regulations of the Banking Law

(4) OUTLINE OF THE CONTROL
1) Items Covered
Banks and bank holding companies (BHC)

2) Outline of the Control
Banks shall submit an interim business report and a final business report every business year to Prime Minister (Article 19). Furthermore, banks shall publish a balance sheet and a profit and loss statement within three months after the end of every business year (Article 20).
When parties who conduct banking in foreign countries in accordance with the laws in foreign countries are to establish a banking business in Japan, the above foreign bank must designate a branch or a representative office as the headquarters in Japan, and receive a license from the Prime Minister (Article 47).
Bank holding companies (BHCs) shall submit periodically, as deemed necessary by the Prime Minister, reports or resources as references to its business and financial status (Article 52-11).

(5) HIGHLIGHTS OF THE RECENT AMENDMENTS
The following measures were taken with a view to promoting deregulation in areas including bank agency business system and subsidiary regulations, at the same time ensuring proper business operations (amended in 2005; effective April, 2006).
1) Reforms in bank agency business system
2) Deregulation of Subsidiaries, Operations, etc.
3) Measures to ensure proper business operations (including introduction of reporting requests and on-the-spot inspection targeted at contractors of banks, compulsory disclosure of public announcement of interim financial results of banks, etc.)

(6) REFERENCE INFORMATION
(Liaison Office for Further Information)
Financial Services Agency
Tel: 03-3506-6000 http://www.fsa.go.jp