A Comparative Study of New Developments of the Industrial System Based on Industry–Bank Relationships in Japan and Germany after World War II

Abstract

This paper discusses the development of a new system of oligopolistic industrial concentration based on industry–bank relationships after World War II. Industry–bank relationships are important issues related to cooperative inter-firm relationships, the system of corporate governance, corporate development, and Japanese and German capitalism’s accumulation structures. In Japan, industry–bank relationships were restructured through the dissolution of the zaibatsu and the formation of large corporate groups that included a wide array of industries. In Germany, industry–bank relationships developed through various mechanisms such as banks’ credit and securities businesses, the shareholdings and deposited stock system, the assignment of directors from banks to corporations, and the advisory board system. First, this paper examines the postwar industrial system based on industry–bank relationships in Japan. Second, it analyzes new developments in Germany’s industrial systems based on industry–bank relationships. Drawing on these discussions, this chapter discusses the Japanese and German characteristics and the significances of their industrial systems based on industry–bank relationships.