Development and integration of trust companies

Development of trust companies

The enactment of the Trust Business Act meant that trust operations could not be conducted without a license, and only companies with sufficient financial and credit strength could conduct trust operations. Consequently, 27 trust companies received licenses in accordance with the Trust Business Act at the end of 1924.
The credit worthiness of trust companies increased with the successive formation of trust companies, which were the predecessors to the parent organizations of today's trust banks.

Trust company mergers and concurrent trust operations of banks

The entire national economy suffered severe controls under the war conditions at the beginning of World War II, with mergers of financial institutions as well as trust companies.
The Law Concerning the Concurrent Undertaking of Savings Bank Business and Trust Business by Ordinary Banks (known as the Act on Engagement in Trust Business by a Financial Institution under the Financial System Reform Act of 1992; hereinafter, the "Concurrent Business Act") was enacted in 1943. This act promoted mergers between trust companies and banks as well as the integration of trust companies. At the end of the war, seven specialized trust companies existed in Japan.

Origins of trusts in Japan and the enactment of the Trust Act and the Trust Business Act | Development and integration of trust companies | Post World War II high growth and Trust Banks | Establishment of foreign-owned trust banks and the Japanese version of the "Big Bang" financial deregulation | 2004 amendments to the Trust Business Act | 2006 amendments to the Trust Act