The crisis facing Japan's banking sector has been attributed to a wide range of factors: (1) the run-up and collapse of the bubble; (2) a lack of adequate supervision of financial institutions by the government; (3) the stagnation of the economy, because the Japanese growth model is no longer relevant; and (4) bad management of the banks. It is important to reform corporate governance in the real sector, not merely in the financial sector. It should also be recognized that Japan's financial system should reduce the size of the safety net provided by the government not only through the deposit insurance system, but also through the enormous postal savings business.