The Japanese banking crisis of the early 1990s was partly centred on the so-called non-bank banks, subsidiaries of major banks that avoided regulation.
2011), 'The non-bank bank nexus and the shadow banking system', IMF Working Paper WP/11/289.
A second strategy allowing insurers to enter banking was to operate non-bank banks.
The remaining assurbanks, grandfathered by various exemption provisions, owned either non-bank banks or trust companies.
The assurbanking-affiliated CBs are all small trust banks or grandfathered non-bank banks.
Industrial loan companies and other non-bank banks
Mortgage-Related Failures Year Non-bank Banks
Credit Total Lenders Unions 2008 77 25 14 116 2007 150 3 7 160 2006 18 0 9 27 total 245 28 30 303 A complete report of all failed companies is available at: http://www.
Mergers and acquisitions will likely have reduced the number of banks and industry specialists and non-bank banks
will play a more prominent role.
These non-bank banks borrowed funds from government development banks as well as from private commercial banks; in turn they gave loans to consumers to purchase homes and autos but were initially prohibited from accepting deposits or investing in securities or derivatives.
In recent years, the role of non-bank banks in providing financing services to the private sector has increased remarkably.
From 1995 to 2002, two government institutions provided most of the funding to non-bank banks; since about 2003, however, mortgage origination by non-bank banks and commercial banks has been funded largely by other sources.
But they will face swarms of nimble competitors including community banks, industry specialists and non-bank banks
that specialize in providing specific services.