JAPANESE KEIRETSU COMPANY GROUPS - CAUSE OF SUCCESS OR COLLAPSE OF LARGE BANKS

Summary: Keiretsu or company groups represent a specific Japanese form of corporate association that appeared after the Second World War. It is believed that the keiretsu system has played a significant role in the economic recovery and growth of Japan in the post-war period, and has often been cited as one of the factors that have contributed to the high competitiveness of Japanese companies during the 1970s and 1980s. However, this form of association showed its weaknesses in the second half of the 1980s and underwent considerable changes during the 1990s. In this period, the Japanese companies and the banking system were exposed to big losses. Today, keiretsu groups are considered to be one of the main causes of the collapse of major Japanese banks, their successfulness having been questioned.