Making progress

The recovery in Japan's banking sector means that the nation's banks are closer to meeting the minimum capital adequacy requirements of Basel II than was anticipated even 12 months ago. However, challenges remain, particularly with regard to data

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The decade-long struggle among Japanese banks to pull themselves out of the plague of crises that beset the sector in the 1990s has previously caused pundits to predict that the nation's financial services firms would be laggards among the Group of 10 countries in implementing Basel II. However, there are recent signs that Japan may be on track to have a Basel II framework in place on time after all.

Until recently, Japan watchers painted a bleak picture in which a weak macroeconomic background

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