In 2015 the Nikkei Stock Average, which in 2012 was almost as low as 9,000 yen, recovered to over 20,000 yen at one point. The Bank of Japan’s “new dimension in monetary easing” somehow succeeded in changing people’s mindset. Having said that, the initial commitment of a 2% inflation rate within two years has not been achieved. Nevertheless, having adopted this policy, the government has a responsibility to restore the Japanese economy to a solid growth trajectory as part of its monetary and economic policy.

A British thinktank published a “Global Financial Centres Index” ranking financial centers in 79 cities and territories around the world according to their international competitiveness. First was London, second was New York, third was Hong Kong, and fourth was Singapore. Tokyo was in sixth place, but came in third for the number of companies listed on its stock market. A structure for increasing investment in Tokyo needs to be created. For example, Tokyo needs to actively attract foreign financial institutions and become home to large numbers of investors and analysts from overseas.

As of 2015, personal financial assets in Japan amounted to 1,708 trillion yen, while corporate retained earnings stood at 354 trillion yen. Despite this, Japan’s money and capital markets are weak by international standards. This is because 1,500 trillion yen in personal assets, corporate savings, pension funds, and university endowments is not being invested as risk money. We therefore want to propose policies for restoring Tokyo’s position as Asia’s top financial market.