Updated as of October 2005

A Return to Prosperity.

The total number of Japanese banks as of April 15, 2005, was 166, including 6 city banks, 25 trust banks, 2 long-term credit banks, 8 new-types of banks, such as banks that operate online without premises that customers can visit, 12 bank holding companies, 64 primary regional banks and 49 secondary regional banks. The total number of banks has increased by 29 to 166 from 137 banks in 2001. The number of city banks dropped by 1, long-term credit banks remained constant, and secondary regional banks dropped by 7 as a result of mergers/acquisitions, while trust banks increased by 17 and 8 new-types of banks have come into existence for the first time due to the recent liberalization of banking regulations.

Total aggregate deposits at all banks regardless of types as of 2004, were reported to be about 512,869 billion yen, up 0.9 percent from 508,165 billion yen in 2003. Of these total deposits, 326,248 billion yen or 63.6 percent were by individuals, 146,188 billion yen or 28.5 percent by business corporations, and the remaining 31,209 billion yen or 6.1 percent by government, banks and other institutions.

Burdened with accumulated non-performing loans, initially a result of the bubble economy that burst in the early 1990s, and still ongoing deflationary pressure on their client businesses, many Japanese banks have been struggling to overcome a multitude of problems, although their business has regained stability and returned to a state of gradual prosperity, thanks to the progress made in reducing accumulated non-performing loans.

The year of 2004-to-2005 period marked the last stage of active reorganization of major banks through acquisitions or mergers as seen in the case of UFJ bank merging with Tokyo Mitsubishi Bank scheduled to be completed in the latter half of 2006.