Financial Centres: Tokyo
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Tokyo, formally Tokyo Metropolis ,is one of the 47 prefectures of Japan.Tokyo is one of the three world finance “command centres”, along with New York City and London. Tokyo has the largest metropolitan economy in the world.
A major economic power,Japan has the world’s second largest economy by nominal GDP. It is a member of the United Nations, G8, G4, OECD and APEC, with the world’s fifth largest defense budget. It is also the world’s fourth largest exporter and sixth largest importer and a world leader in technology and machinery.
Japan’s economy is characterized by Low overall taxation and overwhelmingly private sector economy compared to most Western countrieshigh economic freedom, close government-industry cooperation for economic growth, emphasis on science and technology, and strong work ethic.
Financial Background
Tokyo is a major international finance center,houses the headquarters of several of the world’s largest investment banks and insurance companies, and serves as a hub for Japan’s transportation, publishing, and broadcasting industries. During the centralized growth of Japan’s economy following World War II, many large firms moved their headquarters from cities such as Osaka (the historical commercial capital) to Tokyo, in an attempt to take advantage of better access to the government.
The Tokyo Stock Exchange is Japan’s largest stock Exchange, and second largest in the world by market capitalization and fourth largest by share turnover. In 1990 at the end of the Japanese asset price Bubble, it accounted for more than 60% of the world stock Market value.Tourism in Tokyo is also a contributor to the economy.
Japan Will relax barriers between banks and brokerages and allow firms to Offer a broader Range of financial products, as the world’s second-largest economy continues its push to make Tokyo more competitve as a global financial centre.Japan has been fighting to change its image as a closed shop.It Will also become easier for financial firms to share information across divisions, making it possible for the securities arm of a company, for example, to market products to clients of another division.