In Finance, What Is Significant Influence?

The financial big bang refers to the London financial industry policy change led by Thatcher's government in 1986. The change aims to significantly reduce regulation. After the reform, foreign consortia were allowed to purchase British listed companies, and the composition and ownership of the City of London Investment Bank and brokerage companies changed dramatically. The City has introduced a more international management style, using electronic transactions such as computers and telephones to replace the traditional face-to-face bargaining, which has sharply increased the level of competition. Similar measures in Japan since then, such as the policy of deregulation of financial markets in 2001, have also been referred to as the "Tokyo Big Bang", or "Tokyo Big Bang."

Financial bang

I. The first financial big bang: financial liberalization characterized by integrated financial management promoted by the government ^[1]

The dramatic development of the UK's financial industry in recent years has benefited from many factors, such as a sound legal system, an open and competitive market environment, moderate and efficient regulation, a flexible labour market, attractive tax arrangements and the full use of technology The advantages of progress, etc., the most important of which are the two basic factors of an open competition environment and good supervision, which provide a fundamental guarantee for market liquidity and financial innovation. And all this is largely due to the reform of the British financial system known as the two big bangs. ^[2]

In November 1996, former Japanese Prime Minister Ryutaro Hashimoto proposed to achieve the goal of building Tokyo into a "free, fair, global" financial market in 2001 through financial reforms. In June 1997, the Ministry of Finance (now the Ministry of Finance) announced the "Plan for Financial System Reform", which officially kicked off the financial reform. According to the Hashimoto government's original plan, this reform was centralized in time and continuous in policy, and the reform content almost covered the entire financial field. It was the most profound financial reform in Japan after the war. As the financial reform draws on the experience and practices of the British "financial big bang" in many aspects, Prime Minister Hashimoto called it the Japanese version of the "financial big bang", and used this as a resounding slogan to promote it comprehensively Financial reform.

Its core is to promote financial liberalization by deregulating financial controls. The main legal basis of the Tokyo Financial Big Bang is the "Foreign Exchange Management Law" and the "Bank of Japan Law." The main content is that Japan will relax restrictions on foreign exchange transactions. The venues for foreign exchange transactions are not limited to chartered banks, and even supermarkets can engage in currency exchange. Japan's financial industry is officially moving towards free competition.