Since the turn of the 20th century, Japan's principal financial institutions have been impacted by a series of banking crises, misdirected government policies, and external influences that have largely shaped it today. Despite Japan being the world's second largest economy and its mega-banks among the largest in the world, the Japanese banking industry faces numerous challenges, some of which are within its control. The purpose of this paper is to provide the reader with a thorough review of the Japanese banking industry since the late 19th century, as well as discuss the key challenges that presently exist.

Corporate governance practices that focus on accountability, transparency, and disclosure protect shareowners and reduce the potential for corporate failure. They also inspire trust and confidence in companies thereby leading investors to lower their equity risk premiums and pay higher prices for an ownership interest. There is plenty of empirical evidence to substantiate a strong correlation between good corporate governance practices and shareowner value in markets around the world. This paper is intended to familiarize the reader with best corporate governance practices and the strategies shareowners may be able to undertake to enhance the value of their ownership interests.