The article is composed of four parts:

In the traditional model with consideration to features of the Japanese business sector, the focus is first of all, on cross-shareholding which decreases danger of hostile takeover and with assistance of main bank system - has strengthened the financial power of postwar capital groups. Simultaneously, the inefficiency of the debated system, seen as practicing sale of ailing firms at the internal market of a closed industry group is being argued.

Other drawbacks in the structure of private sector could be summarized as: full-life employment, seniority - based promotional system "from within", enterprise work unions, as well as minor role of the outside shareholders. In turn, disadvantages in institutional system of banks cover: the scheme of convoy, with its disapproval of bankruptcy as well as holding of shares in firms by banks and vice versa.

In the Japanese monetary policy zero interest rates have been applied, but they neither brought recovery nor accelerated credit action (liquidity trap according to Keynes). This is why, in this article, we recommend greater emphasis being put on inflation targeting. On the other hand, options in the field of exchange rate policy, have been evaluated as discouraging, because possible devaluation of the Japanese yen, might result in trade friction with major Japan's partners.

So the most important recommendations in order to solve the bank and financial crises include the following: observing not only macroeconomic, but also microeconomic growth factors; diminishing government intervention; consolidation of capital market and conducting changes in a bank system itself.