The Rise and Fall of Abacus Banking in Japan and China Yuko Arayama Panos Mourdoukoutas QUORUM BOOKS The Rise and Fall of Abacus Banking in Japan and China The Rise and Fall of Abacus Banking in Japan and China Yuko Arayama and Panos Mourdoukoutas QUORUMBOOKS Westport,Connecticut • London LibraryofCongressCataloging-in-PublicationData Arayama,Yuko,1951– TheriseandfallofabacusbankinginJapanandChina/YukoArayama,Panos Mourdoukoutas. p. cm. Includesbibliographicalreferencesandindex. ISBN1–56720–324–8(alk.paper) 1. Banksandbanking—Japan. 2. Banksandbanking—China. I. Title. II. Mourdoukoutas,Panos. HG3324.A753 2000 332.1'095121—dc21 99–046055 BritishLibraryCataloguinginPublicationDataisavailable. Copyright(cid:1)2000byYukoArayamaandPanosMourdoukoutas Allrightsreserved.Noportionofthisbookmaybe reproduced,byanyprocessortechnique,without theexpresswrittenconsentofthepublisher. LibraryofCongressCatalogCardNumber:99–046055 ISBN:1–56720–324–8 Firstpublishedin2000 QuorumBooks,88PostRoadWest,Westport,CT06881 AnimprintofGreenwoodPublishingGroup,Inc. www.quorumbooks.com PrintedintheUnitedStatesofAmerica TM Thepaperusedinthisbookcomplieswiththe PermanentPaperStandardissuedbytheNational InformationStandardsOrganization(Z39.48–1984). 10 9 8 7 6 5 4 3 2 1 To Georgios and Michiko Nature teaches us to pay little heed to what fortune brings, and when we are prosperous to understand that we are un- fortunate, and when we are unfortunate not to regard pros- perity highly, and to receive unmoved the goodthingswhich come from fortune and to range ourselves boldly against the seemingevilswhichitbrings;forallthatmanyregardasgood or evil is fleeting, and wisdom has nothing in common with fortune. —Epicurus Contents Exhibits xi Preface xv Acknowledgments xix 1. Beyond Non-performing Assets: Abacus Banking 1 I. The Rise and Fall of Abacus Banking and the Banking Crisis in Japan 17 2. The Rise of Abacus Banking in Japan 19 3. The Fall of Abacus Banking in Japan 53 4. The Banking Crisis 73 II. The Rise and Fall of Abacus Banking and the Looming Banking Crisis in China 99 5. The Rise of Abacus Banking in China 101 6. The Fall of Abacus Banking in China 127 7. The Looming Banking Crisis in China 145
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