The Role of the Universal Banking Model in Assisting Banks to Finance Economic Enterprises (The Experience of Japan)

In some countries, particularly Japan and Germany, banks are recognized as major actors in corporate governance within non-financial companies. In other words, in addition to their role as commercial banks, they also perform the functions of investment banks. This model of banking is referred to as universal banking, which differs from the commercial banking model. Therefore, the experience of this type of banking, in terms of the mode of intervention, ownership, corporate governance, level of risk, profitability, and other aspects, is subject to examination and study. It appears that the universal banking model can offer advantages for Iran in its path toward development. Accordingly, this study seeks to analyze the experience of the universal banking model—known in Japan as the main banking model—to identify the challenges and opportunities it presents, thereby providing strategies for the Iranian banking system to improve the financing of economic enterprises.