The fact that Japanese companies dominated the top ranks of the 1989 global market-capitalization rankings, including 5 banks, ultimately led to the subsequent decline of the banks and the revival of the trading companies. The author points to differences in business models and personnel policies as the factors that divided their fortunes.
In 1989, Japanese companies accounted for 7 of the 10 companies at the top of the global market-capitalization rankings, including 5 banks. This shows how Japanese companies’ market capitalization stood out on the global stage.
The author explains the situation at the time. At the peak of the bubble economy, Japanese companies were highly valued, and several banks ranked among the world’s largest companies.
Today, however, those established banks have disappeared into history, while the general trading companies that endured the winter years have made a comeback. The turning point was the shift in their business models and personnel policies.
This article is excerpted and edited from a work by financial journalist Suzuki Masamitsu (鈴木雅光), and examines the changes in banks and trading companies from the perspective of personnel management.