Changes in the CorporateBalance-Sheet Structure since 1980 in Japan

Banks' asset portfolios changed significantly in the 1980s in Japan. This reflected the structural changes in corporate financing, namely, the shift from reliance on bank lending to capital market financing--the behavior particularly evident among large manufacturing firms--against the background of stable but slower economic growth and the deregulation of financial markets. The large fluctuations in asset prices in the late 1980s also contributed to the changes in banks' portfolios.