A comparative study of the financial systems of U.S., Japan and Germany : lessons and implications for emerging economies

111 p.One of the most striking differences among the three developed countries under study is the wide variations in their financial systems. This paper compares the financial system of U.S., Japan and Germany with the aim of drawing useful lessons for emerging economies. The comparison shows that the U.S. and Germany are at opposite ends of the spectrum whereas Japan is somewhere in between. Germany is at the extreme where a few large banks play a dominant role and financial markets are not very important. The U.S. is on the other extreme where financial markets play a much more important role with the banking system accorded with lesser importance. Japan is placed in between the two countries. Traditionally, it had a bank-dominated system like Germany's. However, in recent years, its financial markets are rapidly developing and starting to play an increasingly important role, as their counterparts do in U.S.ACCOUNTANC