The main reason why the Japanese liberalized the bank mergers in Japan was to protect the economy and prevent an economic crash.
<h3>What is Financial Liberalization?</h3>
This refers to the removal of regulatory control in the financial sector to promote economic growth.
The government of Japan faced an economic crash that threatened to cripple the economy due to stock market crash, failing banks, etc and there was the use of risk-based capital to try and prevent this, amongst other solutions.
Hence, we can see that the key aspects of the liberalization program were:
The key criticism of the program is that it failed to address the scale of the problem and the solution was only short-term.
Read more about financial liberalization here:
brainly.com/question/26948358
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