Tomoaki Hayashi and Hideki Kanda
This chapter describes bank resolution in Japan, including cross-border bank insolvencies. The Japanese regime for bank resolution has changed over time reflecting lessons from past experiences, including the Japanese financial crisis in the 1990s. The current regime is also built upon the result of international discussions after the global financial crisis. The complexity of bank resolution lies in the fact that judicial processes and regulatory interventions take place simultaneously, and in a cross-border context, multiple courts and regulators are inevitably involved. In this landscape, how the financial system, not a particular troubled bank, should effectively be protected is not an easy question. The process and substance of regulatory intervention in Japan are thus complicated. In this chapter, we describe regulatory developments in Japan, and point out some remaining issues for future consideration.